Harris Machinery received a demand loan of $170,000. It repaid $75,000 at the end of the first year, $80,000 at the end of the second year, and the balance at the end of the third year. The interest rate charged on the loan was 5.80% compounded semi-annually for the first year, 5.32% compounded quarterly for the second year, and 5.04% compounded monthly for the third year. a. What was the balance of the loan at the end of the first year? Round to the nearest cent b. What was the balance of the loan at the end of the second year? Round to the nearest cent
Harris Machinery received a demand loan of $170,000. It repaid $75,000 at the end of the first year, $80,000 at the end of the second year, and the balance at the end of the third year. The interest rate charged on the loan was 5.80% compounded semi-annually for the first year, 5.32% compounded quarterly for the second year, and 5.04% compounded monthly for the third year. a. What was the balance of the loan at the end of the first year? Round to the nearest cent b. What was the balance of the loan at the end of the second year? Round to the nearest cent
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Harris Machinery received a demand loan of $170,000. It repaid $75,000 at the end of the first year, $80,000 at the end of the second year, and the balance at the end of the third year. The interest rate charged on the loan was 5.80% compounded semi-annually for the first year, 5.32% compounded quarterly for the second year, and 5.04% compounded monthly for the third year.
a. What was the balance of the loan at the end of the first year?
Round to the nearest cent
b. What was the balance of the loan at the end of the second year?
Round to the nearest cent
c. What amount at the end of the third year will settle the loan?
Round to the nearest cent
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