Question
A $10, 000 loan advanced on May 1 at 8 1⁄4 % requires two payments of
$3000 on July 15 and September 15, and a third payment on November 15. What
must the third and final payment be in order to settle the debt?
$3000 on July 15 and September 15, and a third payment on November 15. What
must the third and final payment be in order to settle the debt?
Answers
Henry
P = Po + Po*r*t.
P = 10,000 + 10,0000*(0.0825/365)*197 = 10,000 + 445.27 = $10,445.27.
3rd Payment = 10,445.27 - 6000 = $4,445.27.
P = 10,000 + 10,0000*(0.0825/365)*197 = 10,000 + 445.27 = $10,445.27.
3rd Payment = 10,445.27 - 6000 = $4,445.27.