A person borrowed a loan and pledged to repay it and its interest using the amortization method, out of the loan principal with interest in four installments. Each installment is paid at the end of every six months. If you know that the interest rate is 5% annually and that the first installment of the principal amount and its interest is 840 dinars, so the value of the loan amount is?? A - 3200 dinars B - 3600 dinars c 4000 dinars D - 4500 dinars.
A person borrowed a loan and pledged to repay it and its interest using the amortization method, out of the loan principal with interest in four installments. Each installment is paid at the end of every six months. If you know that the interest rate is 5% annually and that the first installment of the principal amount and its interest is 840 dinars, so the value of the loan amount is?? A - 3200 dinars B - 3600 dinars c 4000 dinars D - 4500 dinars.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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A person borrowed a loan and pledged to repay it and its interest using the amortization method, out of the loan principal with interest in four installments. Each installment is paid at the end of every six months. If you know that the interest rate is 5% annually and that the first installment of the principal amount and its interest is 840 dinars, so the value of the loan amount is??
A - 3200 dinars
B - 3600 dinars
c 4000 dinars
D - 4500 dinars.
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