Jones purchased a cottage, paying $30 000 down and agreeing to pay $1800 at the end of every month for the next 10 years. The rate of interest is j2 = 5%. Jones pays off the remaining balance without penalty by making a single payment at the end of 5 years. Determine the extra amount that Jones pays in addition to the regular payment then due.
Jones purchased a cottage, paying $30 000 down and agreeing to pay $1800 at the end of every month for the next 10 years. The rate of interest is j2 = 5%. Jones pays off the remaining balance without penalty by making a single payment at the end of 5 years. Determine the extra amount that Jones pays in addition to the regular payment then due.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Jones purchased a cottage, paying $30 000 down and agreeing to pay $1800 at the end of every month for the next 10 years. The rate of interest is j2 = 5%. Jones pays off the remaining balance without penalty by making a single payment at the end of 5 years. Determine the extra amount that Jones pays in addition to the regular payment then due.
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