Mathematics, 12.08.2020 04:01, lexybellx3
Assume a bank loan requires an interest payment of $85 per year and a principal payment of $1,000 at the end of the loan's eight-year life. What would be the present value of this loan if it carried a 10% interest rate?
Answers: 1
![PV = [ \frac{C}{r} * [1 - \frac{1 }{ (1 +r)^n} ] + \frac{P}{(1 + r)^n} ]](/tpl/images/0717/9200/d1985.png)
![PV = [ \frac{85}{0.10} * [1 - \frac{1 }{ (1 +0.10)^8} ] + \frac{1000}{(1 + 0.10)^ 8} ]](/tpl/images/0717/9200/b9f2d.png)
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Mathematics, 21.06.2019 18:30, Ateruel95
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Assume a bank loan requires an interest payment of $85 per year and a principal payment of $1,000 at...
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