icquiz12solution

icquiz12solution - during the 2 years. How much will she...

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Name IN CLASS QUIZ #1 Martha Stewannabe wants to buy a professional oven which retails for $200,000. The store agrees to take 20% as downpayment and finance the rest with a 2 year loan at an annual interest rate of 8%. Martha will pay back the loan in equal monthly installments
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Unformatted text preview: during the 2 years. How much will she have to pay each month, if the loan is to be fully paid off by the end of the 2 years? PV = $200,000*.8 = $160,000 N = 24 I/Y = 8/12 = 0.6667 CPT PMT = -7,236.37 => $7,236.67...
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