Subject: Quantitative Theory of Interest

Textbook: The Theory of Interest, by S. Kellison, 3rd Ed.

(1 point) (Exercise 3.34) A loan of $11000 is to be repaid by 10 annual payments beginning 6 months from the date of the loan. The first payment is to be half as large as the others. For the first 3 1/2 years interest is at 0.036 effective; for the remainder of the term interest is at 0.073 effective. Find amount of the first ayment. ANSWER $