Question
Lynn borrows $5,000 at 15 percent per year compounded monthly. She wishes to repay the loan with 12 end-of-month payments. She wishes to make her
Lynn borrows $5,000 at 15 percent per year compounded monthly. She wishes to repay the loan with 12 end-of-month payments. She wishes to make her first payment 3 months after receiving the $5,000. She also wishes that, after the first payment, the size of each payment be 10 percent greater than the previous payment.
A. What is the size of her 6th payment? (The answer to this part is $413.55, do not know how to get this)
B. Solve for the case in which the size of each payment is $60 greater than the previous payment.
Please solve using a discrete compounding table, including the table notation, ex.(p/f,i%,n)
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