A loan of $10,000 is to be repaid with annual payments, at the end of each year, for the next 21 years. For the first 7 years the payments are X per year, the second 7 years they are 2X per year, and for the third 7 years they are 3X per year. 1) Find X if i(2) = 10%. 2) Find X if i(2) = 8% for the first 10 years and i(2) = 12% afterwards.

A loan of $10,000 is to be repaid with annual payments, at the end of each year, for the next 21 years. For the first 7 years the payments are X per year, the second 7 years they are 2X per year, and for the third 7 years they are 3X per year. 1) Find X if i(2) = 10%. 2) Find X if i(2) = 8% for the first 10 years and i(2) = 12% afterwards.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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