Asked by MOLINA GUTRIDGE on May 01, 2024
Verified
Three equal payments were made one, two, and three years after the date on which a $10,000 loan was granted at 10.5% compounded monthly. If the balance immediately after the third payment was $5,326.94, what was the amount of each payment?
Compounded Monthly
Interest calculated monthly on the principal sum plus previously earned interest.
Equal Payments
Regularly scheduled payments of the same amount, common in loans and amortization plans.
- Calculate the present and anticipated value of single and assorted cash flows.
- Investigate and resolve issues pertinent to lending, remittances, investment activities, and gains.
- Utilize formulas for compound interest to calculate interest compounded quarterly, semi-annually, and annually.
Verified Answer
GP
Learning Objectives
- Calculate the present and anticipated value of single and assorted cash flows.
- Investigate and resolve issues pertinent to lending, remittances, investment activities, and gains.
- Utilize formulas for compound interest to calculate interest compounded quarterly, semi-annually, and annually.