When you purchased an item on credit, you agreed to the following plan: an initial payment of $825,000 and three payments of $1'320,000, $1'480,000 and $2'060,000 at three, six and ten months respectively, and an interest rate of 36.5% TV. After five months you pay three-fourths of the balance at that time and the remainder four months later.

Determine the value of each of these two payments.

Answer rating: 100% (QA)

To solve this problem we need to first find the remaining balance on the credit after 5 months Then ... View the full answer