You borrow $5000 now and agree to pay this whole amount back in three payments: Payment 1. SX in 3 months. Payment 2. $2X in 7 months. Payment 3. $2X in 12 months. a) Determine X, if (yearly) interest is at 11.0% compounded monthly. b) Determine X, if (yearly) interest is at 11.0% compounded continuously.

You borrow $5000 now and agree to pay this whole amount back in three payments: Payment 1. SX in 3 months. Payment 2. $2X in 7 months. Payment 3. $2X in 12 months. a) Determine X, if (yearly) interest is at 11.0% compounded monthly. b) Determine X, if (yearly) interest is at 11.0% compounded continuously.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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