You borrowed $10,000 from a local bank with agreement that you will pay back the loan according to a graduated payment plan. If your first payment is set as $1,500 at the end of first year, what would be the remaining payment look like at a borrowing rate of 10% over five years?

You borrowed $10,000 from a local bank with agreement that you will pay back the loan according to a graduated payment plan. If your first payment is set as $1,500 at the end of first year, what would be the remaining payment look like at a borrowing rate of 10% over five years?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

You borrowed $10,000 from a local bank with agreement that you will pay back the loan
according to a graduated payment plan. If your first payment is set as $1,500 at the end
of first year, what would be the remaining payment look like at a borrowing rate of 10%
over five years? (Ans. G=$628.67)

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