Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A demand loan of $8000 is repaid by payments of $3000 atter fifteen months, $4000 after thirty months, and a final payment after four years.

image text in transcribed
A demand loan of $8000 is repaid by payments of $3000 atter fifteen months, $4000 after thirty months, and a final payment after four years. If interest was 8% for the first two years and 9% for the remaining time, and compounding is quarterly, what is the size of the final payment? The size of the final payment is 5 (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions