Homework Answers
| Initial loan | 8000 | |||
| No. of payments | 10 | |||
| Rate of interest | 7% | |||
| Monthly repayment | 1139.02 | |||
| Loan value after 4 payments | 5429.18 | |||
| Renegotiated payments | ||||
| Yr | ||||
| 0 | -8000 | IRR | 6.50% | |
| 1 | 1139.02 | |||
| 2 | 1139.02 | Total payout now | 10711.6 | |
| 3 | 1139.02 | |||
| 4 | 1139.02 | Total payout had 10 installments been paid | 11390.20 | |
| 5 | 1538.88 | |||
| 6 | 1538.88 | Savings | 678.60 | |
| 7 | 1538.88 | |||
| 8 | 1538.88 | |||
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the answer is 678.60
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