You Take Out a Loan to Buy a Property and Agree

question 33

Multiple Choice

You take out a loan to buy a property and agree to pay $53 000 one year from now,another $53 000 two years from now,and a final payment of $53 000 three years from now.If your interest rate is fixed at 8.5% per annum,compounded annually,calculate the value of the loan today.

• A) $135 363.19
• B) $139 426.13
• C) $146 543.78
• D) $157 515.25

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Definitions:

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