Five years ago, a person borrowed $100,000 at an interest rate of 8% per year compounded semiannually. When the money was borrowed, he stated that he would pay it over ten years by semi-annual payments. He made his tenth payment today and has decided to refinance the balance and pay it over the next two years. If his new interest rate is 5% per year compounded monthly, what will be his new monthly payment?

Five years ago, a person borrowed $100,000 at an interest rate of 8% per year compounded semiannually. When the money was borrowed, he stated that he would pay it over ten years by semi-annual payments. He made his tenth payment today and has decided to refinance the balance and pay it over the next two years. If his new interest rate is 5% per year compounded monthly, what will be his new monthly payment?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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