A bank offers a home buyer a 30-year loan at 8% per year. If the home buyer borrows $110,000 from the bank, how much must be repaid every year?
a. $11,725.22
b. $15,633.63
c. $9,771.02
d. $13,679.43
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
110,000=Annuity[1-(1.08)^-30]/0.08
110,000=Annuity*11.2577833
Annuity=110,000/11.2577833
=$9,771.02(Approx).
A bank offers a home buyer a 30-year loan at 8% per year. If the home...
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please can you answer question 19-25
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