Question: What linear-gradient amount beginning in period 2 is required so that a loan of $12,000 is paid off in 8 periods using an interest rate

What linear-gradient amount beginning in period 2 is required so that a loan of $12,000 is paid off in 8 periods using an interest rate of 8.00% if the beginning loan payment one period from now is 1900? Clearly indicate the sign of the gradient in your answer.

Use the Microsoft Excel goal seek function for the answer. Thank you.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!