Bennington Company has borrowed a certain amount from the bank that it will repay in 24 monthly installments. The bank charges 6% interest annually on this loan and the monthly payment is $6000. Find the amount of loan.
Answer
Monthly
interest = 6%/12 = 0.005
Number of
months = 24
monthly payment = 6000
PV = 6000 x
[1-1.005^-24]/0.005
PV =
135377.2
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