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A Debt of $140 000

Question 75

Essay

A debt of $140 000.00 is to be repaid in installments due at the end of each month for 15.5 years. If the payments are deferred for three years and interest is 7.28% compounded quarterly, what is the size of the monthly payments?

Correct Answer:

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FV = 140000.00(1.0182)12
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