A demand loan of $6000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four years, and a final payment after eight years. Interest is 7% compounded monthly for the first two years, 8% compounded semi-annually for the next two years, and 8% 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 $6000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four years, and a final payment after eight years. Interest is 7% compounded monthly for the first two years, 8% compounded semi-annually for the next two years, and 8% 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.)
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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A demand loan of $6000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four years, and a final payment after eight years. Interest is 7% compounded monthly for the first two years, 8% compounded semi-annually for the next two years, and 8% 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.)
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