Engr. Como decided to buy a townhouse amounting to 5N IT pald today. He is been told that he is to pay this at the rate of 6% compounded semi-annually. If he is to pay 200k every six months. How long it will take for him to pay the townhouse fully if payments are made at the beginning of the month? ANSWER: v = 22.0328yrs

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Topic: Annuities due Formulas in annuities due *future value, F=C [(1+i)^n -1/i] (1+i) * present value, P=C [1-(1+i)^-n/i] (1+i) Please show how the final answer arrived.
3.) Engr. Como decided to buy a townhouse amounting to 5Million if paid
today. He is been told that he is to pay this at the rate of 6% compounded
semi-annually. If he is to pay 200k every six months. How long it will take
for him to pay the townhouse fully if payments are made at the beginning
of the month?
ANSWER: y =
22.0328yrs
Transcribed Image Text:3.) Engr. Como decided to buy a townhouse amounting to 5Million if paid today. He is been told that he is to pay this at the rate of 6% compounded semi-annually. If he is to pay 200k every six months. How long it will take for him to pay the townhouse fully if payments are made at the beginning of the month? ANSWER: y = 22.0328yrs
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