A demand loan of $8000.00 is repaid by payments of $4000.00 after two years, $4000.00 after four years, and a final payment after eight years. Interest is 9% compounded monthly for the first two years, 10% compounded annually for the next two years, and 10% compounded monthly thereafter. What is the size of the final payment?

A demand loan of $8000.00 is repaid by payments of $4000.00 after two years, $4000.00 after four years, and a final payment after eight years. Interest is 9% compounded monthly for the first two years, 10% compounded annually for the next two years, and 10% compounded monthly thereafter. What is the size of the final payment?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5Q: If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the...

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