An amount equal to $50,000 is borrowed at 7% annual compound interest.a. What size equal annual payment is required if the first of 5 payments ismade one year after receiving the $50,000? b. What size payment is required if the first payment is not made until 4 years after receipt?
An amount equal to $50,000 is borrowed at 7% annual compound interest.a. What size equal annual payment is required if the first of 5 payments ismade one year after receiving the $50,000? b. What size payment is required if the first payment is not made until 4 years after receipt?
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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An amount equal to $50,000 is borrowed at 7% annual compound interest.
a. What size equal annual payment is required if the first of 5 payments is
made one year after receiving the $50,000? b. What size payment is required if the first payment is not made until 4 years after receipt?
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