Assume that today you borrowed $30,000 at 4.25% compounded monthly and will pay off the loan with equal monthly payments over the next 7 years. If you were asked to solve for your monthly payment amount using the annuity present value formula, what no. of periods would you input into the formula?

Assume that today you borrowed $30,000 at 4.25% compounded monthly and will pay off the loan with equal monthly payments over the next 7 years. If you were asked to solve for your monthly payment amount using the annuity present value formula, what no. of periods would you input into the formula?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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