Question: A variable rate demand loan showed an initial balance of $12 000, payments of $5000 after 18 months, $4000 after 30 months, and a final

A variable rate demand loan showed an initial balance of $12 000, payments of $5000 after 18 months, $4000 after 30 months, and a final payment after 5 years. Interest was 11% compounded semi-annually for the first two years and 12% compounded monthly for the remaining time. What was the size of the final payment?

Step by Step Solution

★★★★★

3.32 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Balance after 18 months PV 12 00000 I Y 11 C Y 2 i 112 55 0055 n 1... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

726-B-F-F-M (1555).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

A variable rate demand loan showed an initial balance of $9000, payments of $2500 after 6 months, $2500 after 21 months, and a final payment after 4 years. Interest was 8% compounded quarterly for...

A demand loan of $8000 is repaid by payments of $3000 after 15 months, $4000 after 30 months, and a final payment after 4 years. If interest was 8% for the first two years and 9% for the remaining...

Payments of $1800 and $2400 were made on a $10,000 variable-rate loan 18 and 30 months after the date of the loan. The interest rate was 11.5% compounded semiannually for the first two years and...

A variable rate demand loan showed an initial balance of $12 000, payments of $5000 after 18 months, $4000 after 30 months, and a final payment after 5 years. Interest was 11% compounded...

A variable rate demand loan showed an initial loan balance of $12,000, payments of $5000 after 18 months, $4000 after 30 months, and a final payment after five years. Interest was 11% compounded...

Fir A variable rate demand loan showed an initial balance of $20 000.00, payments of $5000.00 after six months, $10000.00 after one year, and a final payment after two years. Interest was 6%...

A sum of $4000 is due for payment three years from now. You want to know how much this payment will be worth seven years from now if money is worth 9% p.a. compounded semi-annually, determine the...

Deficiency of calcium causes Option: 1) Bone and tooth decay 2) Goiter 3) Anaemia 4) Night blindness

Q5) Discuss the relation of resolution and accuracy for robot with a prismatic link manipulator work at a stroke of 4cm and a control memory of 4 bits.

1.10 If two employees who are working in the same division both earn an income of $1,500, what arguments could be used to show that the underlying variableability to earnis continuous?

Brand loyalty and the Chicago Cubs. According to literature on brand loyalty, consumers who are loyal to a brand are likely to consistently select the same product. This type of consistency may come...

In a set of 100 ACT scores that are normally distributed and with a mean of 23 and standard deviation of 4.69, (a) How many scores are expected to be lower than 18.31 (one standard deviation below...

A trade discount series of 10/5/5 is offered on a printer, which is listed at $800. Also, a trade discount series of 5/10/5 is offered on a desk chair listed at $250. Find the total net price for the...

An invoice for $1,200 is dated on June 3, and terms of 3/10, n/30 are offered. A payment of $800 is made on June 12, and the remainder is paid on July 12. Find the amount remitted on July 12 and the...

Give three concrete examples drawn from a programming language with which you are familiar in which a variable is live but not in scope

index

P9-6 Defining and Analyzing Changes in Current Liabilities LO9-1 International Business Machines (IBM) is a leading provider of computer products and services. The company is known for its hardware...