A person borrowed JD50000 , which will be repaid at 20 successive equal annual installments, at an annual interest rate of 14%. If he paid the first 12 installments on time, and he didn't paid the next three installments (13, 14, 15) on time, so as a penalty he have to pay the remaining amount in the period (16-20). Calculate the value of the new installment if he repaid the remaining amount in the dates they agreed upon.

A person borrowed JD50000 , which will be repaid at 20 successive equal annual installments, at an annual interest rate of 14%. If he paid the first 12 installments on time, and he didn't paid the next three installments (13, 14, 15) on time, so as a penalty he have to pay the remaining amount in the period (16-20). Calculate the value of the new installment if he repaid the remaining amount in the dates they agreed upon.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3CQQ

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