discounted loan of $1,000 was taken out by a company for 6 months at a 10% simple discount rate. The proceeds were immediately invested for 6 months at a 15% simple interest rate with three partial payments: of $100 at the end of two months, $200 at the end of four months, and a final payment. Find the size of the final payment using the Declining Balance Method. What annual simple interest rate and simple discount rate were realized by the company.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
A discounted loan of $1,000 was taken out by a company for 6 months at a 10% simple discount rate. The proceeds were immediately invested for 6 months at a 15% simple interest rate with three partial payments: of $100 at the end of two months, $200 at the end of four months, and a final payment. Find the size of the final payment using the Declining Balance Method. What annual simple interest rate and simple discount rate were realized by the company.
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