Marilyn Ho borrowed $24,000 from Steward Financial Enterprises. She was required
ID: 2665335 • Letter: M
Question
Marilyn Ho borrowed $24,000 from Steward Financial Enterprises. She was required to make sixteen equal payments of principal. These were to be made annually with the first payment due exactly one year after she received the $24,000. Ms. Ho also had to make annual payments of interest to the loan holder at an annual effective rate of 8.5%. Immediately after the loan is made, Brady Investment Corporation purchases the right to receive all of Ms. Ho's payments from Stewart Financial Enterprises. The price paid by Brady Investment Corp resulted in Brady having a 7% annual yield on their sixteen-year investment. Find the price that Brady Investment Corp paid Stewart Financial Enterprises.I know the answer is: $26,106.43
Please help!!!
Explanation / Answer
1500
3540.00
22500
2
1912.50
1500
3412.50
21000
3
1785.00
1500
3285.00
19500
4
1657.50
1500
3157.50
18000
5
1530.00
1500
3030.00
16500
6
1402.50
1500
2902.50
15000
7
1275.00
1500
2775.00
13500
8
1147.50
1500
2647.50
12000
9
1020.00
1500
2520.00
10500
10
892.50
1500
2392.50
9000
11
765.00
1500
2265.00
7500
12
637.50
1500
2137.50
6000
13
510.00
1500
2010.00
4500
14
382.50
1500
1882.50
3000
15
255.00
1500
1755.00
1500
16
127.50
1500
1627.50
0
17340.00
24000
41340.00
7% yield
Interest
Annual
Total
on annual
Periods
at 8.5%
payment
payment
Book value
payment
24000
1
2040.00
1500
3540.00
22500
247.80
2
1912.50
1500
3412.50
21000
238.88
3
1785.00
1500
3285.00
19500
229.95
4
1657.50
1500
3157.50
18000
221.03
5
1530.00
1500
3030.00
16500
212.10
6
1402.50
1500
2902.50
15000
203.18
7
1275.00
1500
2775.00
13500
194.25
8
1147.50
1500
2647.50
12000
185.33
9
1020.00
1500
2520.00
10500
176.40
10
892.50
1500
2392.50
9000
167.48
11
765.00
1500
2265.00
7500
158.55
12
637.50
1500
2137.50
6000
149.63
13
510.00
1500
2010.00
4500
140.70
14
382.50
1500
1882.50
3000
131.78
15
255.00
1500
1755.00
1500
122.85
16
127.50
1500
1627.50
0
113.93
17340.00
24000
41340.00
2893.8
Interest Annual Total Periods at 8.5% payment payment Book value 24000 1 2040.001500
3540.00
22500
2
1912.50
1500
3412.50
21000
3
1785.00
1500
3285.00
19500
4
1657.50
1500
3157.50
18000
5
1530.00
1500
3030.00
16500
6
1402.50
1500
2902.50
15000
7
1275.00
1500
2775.00
13500
8
1147.50
1500
2647.50
12000
9
1020.00
1500
2520.00
10500
10
892.50
1500
2392.50
9000
11
765.00
1500
2265.00
7500
12
637.50
1500
2137.50
6000
13
510.00
1500
2010.00
4500
14
382.50
1500
1882.50
3000
15
255.00
1500
1755.00
1500
16
127.50
1500
1627.50
0
17340.00
24000
41340.00
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