A loan of $10500 is to be repaid by 10 annual payments beginning 6 months from the date of the loan. The first payment is to be half as large as the others. For the first 4 1/2 years interest is at 0.047 effective; for the remainder of the term interest is at 0.078 effective. Find amount of the first payment.

A loan of $10500 is to be repaid by 10 annual payments beginning 6 months from the date of the loan. The first payment is to be half as large as the others. For the first 4 1/2 years interest is at 0.047 effective; for the remainder of the term interest is at 0.078 effective. Find amount of the first payment.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 18P

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