Answered: b) Ameena borrowed a certain sum of…

b) Ameena borrowed a certain sum of money from a financial institution that charged 4.5% compounded monthly. She has to pay RM725 every month for 9 years. Calculate the initial value of the loan.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 5E

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Question

Do b.

b)
Ameena borrowed a certain sum of money from a financial institution that charged
4.5% compounded monthly. She has to pay RM725 every month for 9 years. Calculate
the initial value of the loan.
c)
Nadhirah needs to pay RM168.28 every month for a loan of RM7,000 from XYZ Dallk
at 7.2% compounded monthly.

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