You have to repay a liability of $30,000 after 3 years from now. A bank is offering you 9% fixed interest rate for next three years if you deposit equal sum at the end of each month to have exactly $30,000 when the liability is to be paid off. How much you need to deposit into the bank account at the end of each month for next three years? If the bank demands $735 end-of-month deposits for next 3 years?

You have to repay a liability of $30,000 after 3 years from now. A bank is offering you 9% fixed interest rate for next three years if you deposit equal sum at the end of each month to have exactly $30,000 when the liability is to be paid off. How much you need to deposit into the bank account at the end of each month for next three years? If the bank demands $735 end-of-month deposits for next 3 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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