Answer to Question #73170 in Finance for Johny
2. A woman arranges to repay $5,000 bank loan in 15 equal payments at a 10% effective annual interest rate. Immediately after her fifth payment, she borrows another $2,500, also at 10% per year. When she borrows the $2,500, she talks the banker into letting her repay the remaining debt of the first loan and the entire amount of the second loan in 12 equal annual payments. The first of these payments would be one year after she receives the $2,500. Compute the amount of each of payments.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!