Jones purchased a cottage, paying $30 000 down and agreeing to pay $1800 at the end of every month for the next 10 years. The rate of interest is j2 = 5%. Jones pays off the remaining balance without penalty by making a single payment at the end of 5 years. Determine the extra amount that Jones pays in addition to the regular payment then due

Jones purchased a cottage, paying $30 000 down and agreeing to pay $1800 at the end of every month for the next 10 years. The rate of interest is j2 = 5%. Jones pays off the remaining balance without penalty by making a single payment at the end of 5 years. Determine the extra amount that Jones pays in addition to the regular payment then due

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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