ROBLEM N0.3 r. Bolen needed P27,000 as a down ayment on a new lesla car. He borrowe

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 12PROB
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PROBLEM NO.3
Mr. Bolen needed P27,000 as a down
payment on a new Tesla car. He borrowed
money from his insurance company and
must repay the loan in equal payments
every six months over the next eight years.
The nominal interest rate being charged is
7% compounded continuously. What is the
amount of each payment?
Transcribed Image Text:PROBLEM NO.3 Mr. Bolen needed P27,000 as a down payment on a new Tesla car. He borrowed money from his insurance company and must repay the loan in equal payments every six months over the next eight years. The nominal interest rate being charged is 7% compounded continuously. What is the amount of each payment?
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