Krista borrowed $15,634. The loan is to be repaid by three equal payments due in 50, 138, and 266 days from now respectively. Determine the size of the equal payments at an interest rate of 4% with a focal date of today.

gravplasszo

gravplasszo

Answered question

2022-09-26

Krista borrowed $15,634. The loan is to be repaid by three equal payments due in 50, 138, and 266 days from now respectively. Determine the size of the equal payments at an interest rate of 4% with a focal date of today.

Answer & Explanation

kregde84

kregde84

Beginner2022-09-27Added 10 answers

let z = equal payment that has to be paid
This size of payment is calculated as below.
15634 = z ( 1 + 0.04 ) 50 / 365 + z ( 1 + 0.04 ) 138 / 365 + z ( 1 + 0.04 ) 266 / 365 = 0.994642 z + 0.985281 z + 0.971822 z 2.951745 z = 15634 z = $ 5296.527

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