a) If you owe $10,940 and have 4 months to pay it off at the end of each month, assume an effective interest rate of 1%. What constant amount can you pay every month so the debt is paid off in 4 months b) suppose you owed $10,645 instead and you paid back $3,583 at the end of every month for 4 months. how much interest will you have paid?
a) If you owe $10,940 and have 4 months to pay it off at the end of each month, assume an effective interest rate of 1%. What constant amount can you pay every month so the debt is paid off in 4 months b) suppose you owed $10,645 instead and you paid back $3,583 at the end of every month for 4 months. how much interest will you have paid?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 19PROB
Related questions
Question
! solved both parts a, b
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College