Problem 7 - Varying Payments and Equal Principal Repaid Jee has a loan with an effective annual interest rate of 3%. He makes payments at the end of each year for 13 years. The first payment is 300, and each subsequent payment increases by 10 per year. Calculate the interest portion in the 7 th payment:

I7=

NOTE: I7=iB6 B6= PV of the remaining payments as of time 6: 360, 370, ... , 420.