You want to lend $10,000 as a bank deposit in a private bank with an interest rate 3% per month. You plan to withdraw principle and interest as equal/uniform end-of-period payments over 6 MONTHS. What is the value of the total payment? What is the total interest paid to you at the end of 6 months?

You want to lend $10,000 as a bank deposit in a private bank with an interest rate 3% per month. You plan to withdraw principle and interest as equal/uniform end-of-period payments over 6 MONTHS. What is the value of the total payment? What is the total interest paid to you at the end of 6 months?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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You want to lend $10,000 as a bank deposit in a private bank with an interest rate 3% per month. You plan to withdraw principle and interest as equal/uniform end-of-period payments over 6 MONTHS. What is the value of the total payment? What is the total interest paid to you at the end of 6 months?

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