Question
The sum of $20,000 was borrowed on Jan 1 2004. The terms for repaying the loan were as follows: The borrower will make five annual
The sum of $20,000 was borrowed on Jan 1 2004. The terms for repaying the loan were as follows: The borrower will make five annual payments, the 1stpayment being made on Jan 1 2005 and each payment will be $1000 more than the preceding one. If the interest rate of the loan is 8%, what was the amount of the 1stpayment?
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Price Theory and Applications
Authors: Steven Landsburg
9th edition
1285423526, 978-1285947877, 1285947878, 978-1285423524
