A demand loan of $5000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four years, and a final payment after six years. Interest is 9% compounded quarterly for the first two years, 10% compounded monthly for the next two years, and 10% compounded annually thereafter. What is the size of the final payment? The final payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A demand loan of $5000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four years, and a final payment after six years. Interest is 9% compounded quarterly for the first two years, 10% compounded monthly for the next two years, and 10% compounded annually thereafter. What is the size of the final payment? The final payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 31P
Related questions
Question
![A demand loan of $5000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four years, and a final
payment after six years. Interest is 99% compounded quarterly for the first two years, 10% compounded monthly for the
next two years, and 10% compounded annually thereafter. What is the size of the final payment?
The final payment is $.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83a8f650-be25-4fca-a3ae-843748b03008%2F92bdebae-88a8-4cfc-b3da-52076e6e920c%2Fllhbb99_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A demand loan of $5000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four years, and a final
payment after six years. Interest is 99% compounded quarterly for the first two years, 10% compounded monthly for the
next two years, and 10% compounded annually thereafter. What is the size of the final payment?
The final payment is $.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College