In: Finance
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
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 |
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