Problem 1-13 (L01.3) If you borrow $12,000 with an interest rate of 8 percent to be...

Question

Question

business finance

Answer 1

Answer #1

Answer:

Given

Borrow amount P= $12000

r=8%

n=5 years

Let A be the annual payment

So A=P*r/(1-(1+r)^-n)

A=12000*8%/(1-(1+8%)^-5)

A=$3005.48

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Answer 2

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