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You took a loan now which is to be repaid in equal monthly payments of $277 over the next 10 years, what is the
amount of unpaid loan principal after 2 years if the interest rate is 7% compounded monthly?
a. $6,187
b. $6,010
c. $19,849
d. $23,857
e. $20,317
A bond has a face value (same as its redemption value) of $30,000. The bond matures in 5 years, through
which the bond-holder receives a fixed return of $500 every six months. What should be the purchase price of
this bond now if MARR = 10% per year compounded annually?
a. $22,418
b. $15,357
c. $22,184
d. $20,523
e. $22,489