A 20 year/$10, 000 loan with interest i = 9% is to repaid with 12 payments of X at the end of each year, followed by 8 payments of 5X at the end of each year. Find X and fill out the following amortization table for 3 years. Explain in words why PR1, PR2, and PRa are all negative.
A 20 year/$10, 000 loan with interest i = 9% is to repaid with 12 payments of X at the end of each year, followed by 8 payments of 5X at the end of each year. Find X and fill out the following amortization table for 3 years. Explain in words why PR1, PR2, and PRa are all negative.
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 10P
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A 20 year/$10, 000 loan with interest i = 9% is to repaid with 12 payments of X at the end of each year, followed by 8 payments of 5X at the end of each year. Find X and fill out the following amortization table for 3 years. Explain in words why PR1, PR2, and PRa are all negative.
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