You borrow $42,000 and repay the loan with 6 equal annual payments. The first payment occurs...

You borrow $42,000 and repay the loan with 6 equal annual payments. The first payment occurs one year after receipt of the $42,000 and you pay 8% annual compound interest. a)Solve for the payment size.

b)What is the payment size when interest is 8% compounded monthly, and monthly payments are made over 6 years?

c)What is the payment size when interest is 8% compounded semiannually, and annual payments are made over 6 years?

d)What is the payment size when the first payment is not made until 10 years after receipt of the $42,000?

Kindly help with the 4 sections

Solutions

Expert Solution

Sub part
a	Payment size	$9,085.25

b	Payment size	$736.40

c	Payment size	$4,475.19

d	Amount to be paid	$90,674.85
	Payment size	$19,614.37

Workings

jeff jeffy answered 1 year ago

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