A university is giving loans of $200,000 to its staff for a period of 5 years at 13.5% annual interest. 1. What is the month installment each lecturer will pay? 2. What is the monthly, yearly, and annual interest at the end of the period?
A university is giving loans of $200,000 to its staff for a period of 5 years at 13.5% annual interest. 1. What is the month installment each lecturer will pay? 2. What is the monthly, yearly, and annual interest at the end of the period?
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 6FPE
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A university is giving loans of $200,000 to its staff for a period of 5 years at 13.5% annual interest.
1. What is the month installment each lecturer will pay?
2. What is the monthly, yearly, and annual interest at the end of the period?
Expert Solution
Step 1
1.
given,
Loan amount = $200,000
no of period = 5 years
APR = 13.5%
PMT FORMULA:
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