Jee has a loan with an effective annual interest rate of 3%. He makes payments at the end of each year for 13 years. The first payment is 300, and each subsequent payment increases by 10 per year. Calculate the interest portion in the 7 th payment:

 

I7=

NOTE:
I7=iB6
B6= PV of the remaining payments as of time 6: 360, 370, ... , 420.

Answer rating: 100% (QA)

To calculate the interest portion in the 7th payment we need to follow these steps Step 1 Calculate ... View the full answer