Question 1

09. Suppose you have three personal loans outstanding to your friend Leo. A payment of $1,000 is due today, a payment of $500 is due one year from now and a $250 payment is due two years from now. You would like to consolidate these three loans into one lump sum, with repayment of 36 equal monthly installments, beginning one month from today. Assume the agreed interest rate is 8% per annum. How large will the new monthly payment be? (3 points)