Question
10. Six months ago you took out a business loan from your local credit union. You borrowed $11,500 and agreed to pay off your debt
10. Six months ago you took out a business loan from your local credit union. You borrowed $11,500 and agreed to pay off your debt with three payments. The first payment will be made 10 months (from today) followed by two more payments in 14 months and 22 months from today. The first payment is $200 more than the second payment, and the second payment will be three times bigger than the third payment. (a) Find the size of each payment if the interest rate is 5% simple. Use 10 months as the focal date. Time diagram required. [12 marks] (b) How much interest would you pay over the entire time? [3 marks]
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