Ask Question
8 November, 07:22

A company takes out a loan of 15,000,000 at an annual effective discount rate of 5.5%. you are given: i) the loan is to be repaid with n annual payments of 1,200,000 plus a drop payment one year after the nth payment. ii) the first payment is due three years after the loan is taken out. calculate the amount of the drop payment.

+2
Answers (1)
  1. 8 November, 10:18
    0
    Answer: In the solutions, before they calculate the accumulated value of the payments, they accumulate the balance to time 2. I was wondering why they didn't go to to time 3, when the first payment is due.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company takes out a loan of 15,000,000 at an annual effective discount rate of 5.5%. you are given: i) the loan is to be repaid with n ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers