Single-payment loan repayment Personal Finance Problem A person borrows $100 that he must repay in a lump sum no more than 10 years from now. The interest rate is 8.9% annually compounded. The borrower can repay the loan at the end of any earlier year with no prepayment penalty. a. What amount will be due if the borrower repays the loan after 2 year? b. How much would the borrower have to repay after 3 years? c. What amount is due at the end of the tenth year? a. The amount due if the loan is repaid at the end of year 2 is $ b. The repayment at the end of year 3 is $ (Round c. The amount due at the end of the tenth year is $ (Round to the nearest cent.) the nearest cent.) (Round to the nearest cent.)
Single-payment loan repayment Personal Finance Problem A person borrows $100 that he must repay in a lump sum no more than 10 years from now. The interest rate is 8.9% annually compounded. The borrower can repay the loan at the end of any earlier year with no prepayment penalty. a. What amount will be due if the borrower repays the loan after 2 year? b. How much would the borrower have to repay after 3 years? c. What amount is due at the end of the tenth year? a. The amount due if the loan is repaid at the end of year 2 is $ b. The repayment at the end of year 3 is $ (Round c. The amount due at the end of the tenth year is $ (Round to the nearest cent.) the nearest cent.) (Round to the nearest cent.)
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Transcribed Image Text:5. Single-payment loan repayment Personal Finance Problem A person borrows $100 that he must repay in a lump sum no more than 10 years from now. The interest rate is 8.9% annually compounded. The borrower can repay the loan at the
end of any earlier year with no prepayment penalty.
a. What amount will be due if the borrower repays the loan after 2 year?
b. How much would the borrower have to repay after 3 years?
c. What amount is due at the end of the tenth year?
a. The amount due if the loan is repaid at the end of year 2 is $
b. The repayment at the end of year 3 is $
c. The amount due at the end of the tenth year is $
(Round to the nearest cent.)
(Round to the nearest cent.)
(Round to the nearest cent.)
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