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You owe your best friend $2, 300. Because you are short on cash, you offer to repay the loan over 11 months under the following
You owe your best friend $2, 300. Because you are short on cash, you offer to repay the loan over 11 months under the following condition. The first payment will be $110 at the end of month one. The second payment will be $110 + G at the end of month two. At the end of month three, you'll repay $110 + 2G. This pattern of increasing G amounts will continue for all remaining months. What is the value of G if the interest rate is 0.25% per month? What is the equivalent uniform monthly payment? Repeat Part (a) when the first payment is $130 (i.e., determine G)
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