$(1$ point$)($Exercise $5\mathrm{.}29)$ A loan is repaid with payments which start at $$300$ the first year and increase by $$40$ per year until a payment

of $$900$ is made, at which time payments cease. If interest is $4\%$ effective, find the amount of principal in the $5$ th payment.

ANSWER $=$ $Exercise $5\mathrm{.}29)$ A loan is repaid with payments which start at $$300$

the first year and increase by $$40$

per year until a payment of $$900$

is made, at which time payments cease. If interest is $4$

$\%$ effective, find the amount of principal in the $5$

th payment.