Asked by Ebani Thomas on Jul 14, 2024
Verified
A $7,500 loan at 9% compounded monthly requires three payments at 5-month intervals after the date of the loan. The second payment is to be twice the size of the first payment, and the third payment is to be double the amount of the second payment. Calculate the size of the second payment.
Compounded Monthly
A method where interest is added to the principal amount on a monthly basis, leading to interest earnings on previously earned interest.
Three Payments
A payment plan that divides the total amount owed into three separate payments over a specified period.
Second Payment
The subsequent payment made after the first in a series of payments, often in the context of a financial transaction or loan.
- Ascertain the payment amounts for loans subject to different scenarios, including variable interest rates and non-uniform payment sizes.
Verified Answer
MA
Marlene AbbottJul 18, 2024
Final Answer :
first payment = $1,172.75; second = $2,345.50; third = $4,691.00
Learning Objectives
- Ascertain the payment amounts for loans subject to different scenarios, including variable interest rates and non-uniform payment sizes.