Answered: be paid over the eight-year period?…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

How much interest is payable each year on a loan of

$3,000

if the interest rate is

12%

(simple interest) per year when half of the loan principal will be repaid as a lump sum at the end of

five

years and the other half will be repaid in one lump-sum amount at the end of eight years? How much interest will be paid over the eight-year period? The interest amount is paid at the end of each year.

Year. Interest Accrued for Year

1 ?

2 ?

3 ?

4 ?

5 ?

6 ?

7 ?

8 ?

Total Interest ?

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