What monthly payment is required to pay off a $60,000 loan in seven years if the interest rate on the loan is 8.7% compounded: (Do not round intermediate calculations and round your final answers to 2 decimal places.) Required payment. a. Annually $ b. Seniannually $ $ $ c. Quarterly d. Monthly

What monthly payment is required to pay off a $60,000 loan in seven years if the interest rate on the loan is 8.7% compounded: (Do not round intermediate calculations and round your final answers to 2 decimal places.) Required payment. a. Annually $ b. Seniannually $ $ $ c. Quarterly d. Monthly

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 26P

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

What monthly payment is required to pay off a $60,000 loan in seven years if the interest rate on the loan is 8.7% compounded: (Do
not round intermediate calculations and round your final answers to 2 decimal places.)
a. Annually
b. Seniannually
c. Quarterly
d. Monthly
Required
payment
$
$
$
$

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