Marilyn Ho borrowed $24,000 from Steward Financial Enterprises. She was required to make sixteen equal...
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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. The answer is: $26,106.43
You need to use formulas to get the answer, do not show me excel forms.
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