(a) Suppose you wish to borrow $60,000 at an annually compounded interest rate of 16% for a period of 14 years. What would be the annual repayment?
(a) Suppose you wish to borrow $60,000 at an annually compounded interest rate of 16% for a period of 14 years. What would be the annual repayment?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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(a) Suppose you wish to borrow $60,000 at an annually compounded interest rate of 16% for a period of 14 years.
What would be the annual repayment?
(b) You wish to invest $30,000 today in order to save $60,000 for a deposit to buy a house in several years’ time.
How many years must you invest in order to have a future value of $60,000 if the interest rate is 12%?
How many years must you invest in order to have a future value of $60,000 if the interest rate is 12%?
(c) What is the effective annual rate of a savings account with an annual interest rate of 5.9% compounded quarterly?
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