You borrow 180000 for 12 years from a bank in order to renovate your flat. The effective interest rate charged by the bank is 4.8% per annum. The loan is to be repaid by level annual repayments, paid in arrears. Calculate the annual repayment.

You borrow 180000 for 12 years from a bank in order to renovate your flat. The effective interest rate charged by the bank is 4.8% per annum. The loan is to be repaid by level annual repayments, paid in arrears. Calculate the annual repayment.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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Finance

You borrow 180000 for 12 years from a bank in order to renovate your flat. The effective interest rate charged by the bank is 4.8% per annum. The loan is to be repaid by level annual
repayments, paid in arrears. Calculate the annual repayment.

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