You borrow $10,000 from a bank for three years at an annual interest rate of 12% compounded semiannually. Monthly payments will be made until all the principal and interest have been paid. What is your monthly payment?
You borrow $10,000 from a bank for three years at an annual interest rate of 12% compounded semiannually. Monthly payments will be made until all the principal and interest have been paid. What is your monthly payment?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 26P
Related questions
Question
Draw the cash flow diagram for each problem and use interest rate with five decimal places.
- You borrow $10,000 from a bank for three years at an annual interest rate of 12% compounded semiannually. Monthly payments will be made until all the principal and interest have been paid. What is your monthly payment?
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