solute question (b)please.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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solute question (b)please.

I want a solution written by hands to show why the answer of(b) is 2334.53 

A loan of £10,000 is repaid in 5 years with quarterly payments made in arrears. The
initial payment is of amount P and subsequent payments increase at the end of every
year by 2% p.a. compound. The interest rate is 6% p.a. effective.
(a)
(b)
(c)
Find the value of P.
What is the outstanding balance at the start of the final year?
What is the interest component of the first payment in the final year?
Transcribed Image Text:A loan of £10,000 is repaid in 5 years with quarterly payments made in arrears. The initial payment is of amount P and subsequent payments increase at the end of every year by 2% p.a. compound. The interest rate is 6% p.a. effective. (a) (b) (c) Find the value of P. What is the outstanding balance at the start of the final year? What is the interest component of the first payment in the final year?
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