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You take out a 5-year loan of $20,000 from a bank today, where repayments are made at the end of each month. The bank is
Posted: Wed Jul 06, 2022 6:40 pm
by answerhappygod
- You Take Out A 5 Year Loan Of 20 000 From A Bank Today Where Repayments Are Made At The End Of Each Month The Bank Is 1 (86.53 KiB) Viewed 13 times
You take out a 5-year loan of $20,000 from a bank today, where repayments are made at the end of each month. The bank is having a promotion for its 50th anniversary, where they will pay you a bonus of $500 6 months from now. However, the bank has factored this bonus into the calculation of the repayments. If the bank is earning a nominal interest rate of 8% per annum compounded monthly on this loan over the coming 5 years, calculate the size of the monthly repayment.