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Hillier Hillier
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Posts: 550
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A year ago
Sean Paul borrowed $20 000.00 from his father to finance his new business. The loan agreement calls for equal payments at the end of each month for 10 years. The payments are deferred for 4 years and interest is 4.00% compounded semi-annually. What is the size of the monthly payments?
Textbook 

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
Read 374 times
3 Replies
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SupremeSupreme
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Posts: 374
A year ago
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Balance in 4 years: i = 0.04 ÷ 2 = 0.02, n = 4 × 2 = 8
FV = 20 000  = $23433.19 = 
For annuity: i = 0.02, n = 10 × 12 = 120, c =   = 
p =   - 1 = 0.0033058903
23433.19 = PMT 
23433.19 = PMT(98.9230334)
$236.88 = PMT

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wrote...
11 months ago
just replying to double check my work, I got 236.
wrote...
4 days ago
thank you
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