An amortized loan has 10 annual payments at the end of each year starting one year from now. The first 5 payments are $1000 each and the final 5 payments are $500 each. Interest is at an effective annual rate of 10%. Find the initial amount of the loan.

Answer rating: 100% (QA)

To solve this problem we need to find the present value of the 10 payments using the effective annua... View the full answer