A discounted loan of $20,000 was taken out by a company for 9 months at a 12% simple discount rate. The proceeds were immediately invested for 9 months at a 15% simple interest rate with three partial payments: of $400 at the end of two months, $10,000 at the end of four months, and a final payment. Find the size of the final payment using the Declining Balance Method. 

What annual simple interest rate and simple discount rate were realized by the company.

Answer rating: 100% (QA)

Lets break down the problem step by step Loan Principal P 20000 Simple Discount Rate SDR 12 Time T 9 ... View the full answer