Solutions to Chapter 1

The loan repayment is an annuity with present value equal to $4,248.68. Payments are made monthly, and the monthly interest rate is 1%. We need to equate this expression to the amount borrowed, $4248.68, and solve for the number of months, n. Using a financial calculator, enter: PV = (()4248.68, FV = 0, i = 1%, PMT = 200, and compute n = 24. ................
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