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Hazel has a contract with a bank she pays back her loan in 3 payments -the first one is $5000 (made after a year) -the
Hazel has a contract with a bank
she pays back her loan in 3 payments
-the first one is $5000 (made after a year)
-the second one is $4000(this is made 2 years and a half after the loan was contracted)
-the third one is 3000$, 5 years after the loan was contracted.
- we know that the NOMINAL DISCOUNT RATE is d^(2)=10%
a) find the loan amount
b) after the first payment, Hazel renegotiates her loan so that the nominal discount rate is now d^(4)=8% and her last payement is set to Y, Find Y
thank you so much its been two hours and i dont understand this question
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