Your brother-in-law borrowed $2,000 from you four years ago and then disappeared. Yesterday he returned and expressed a desire to pay back the loan, including the interest accrued. Assuming that you had agreed to charge him 10%, and assuming that he wishes to make five equal annual payments beginning in one year, how much would your brother-in-law have to pay you annually in order to pay off the debt? (Assume that the loan continues to accrue interest at 10% per year.)
A) $697.43
B) $738.63
C) $751.46
D) $772.45
E) $798.24
Correct Answer:
Verified
Q187: The preferred stock of ABC Co. offers
Q188: If $50,000 is borrowed at an annual
Q189: What is the total present value of
Q190: What is the future value of the
Q191: The Government has imposed a fine on
Q193: You are expecting annual cash flows of
Q194: A preferred stock pays an annual dividend
Q195: In order to help you through college,
Q196: Freda Mai has a $65,000 insurance annuity.
Q197: Moe purchases a $100, 30-year annuity. Larry
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents