For the second year 1100 is owed so this year has 1100


Compute a dollar-year measure of the amount owed for the four loan patterns in Exhibit 2.9. For example, the business loan has $1000 owed for the ?rst year for 1000 dollar-years. For the second year, $1100 is owed, so this year has 1100 dollar-years for a cumu- lative total of 2100 dollar-years. Continue through 5 years. Then, divide the sum of the interest paid over the 5 years by the total dollar-year measure of the amount owed. What is the result?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: For the second year 1100 is owed so this year has 1100
Reference No:- TGS01350147

Expected delivery within 24 Hours