A loan of $2,000 is paid by the following series of payments, beginning one year after the loan is made: 100, 105, 110, 115, ..., 145, 150, 145, 140, ..., 105, 100, 100, 100, ..., The payments of $100 continue for as long as necessary, and then a smaller payment is made one year after the last payment of $100. Determine the total number of payments needed to repay this loan, and the size of the last payment, if the effective annual rate is 4%.
A loan of $2,000 is paid by the following series of payments, beginning one year after the loan is made: 100, 105, 110, 115, ..., 145, 150, 145, 140, ..., 105, 100, 100, 100, ..., The payments of $100 continue for as long as necessary, and then a smaller payment is made one year after the last payment of $100. Determine the total number of payments needed to repay this loan, and the size of the last payment, if the effective annual rate is 4%.
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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A loan of $2,000 is paid by the following series of payments, beginning one year after the loan is
made:
100, 105, 110, 115, ..., 145, 150, 145, 140, ..., 105, 100, 100, 100, ...,
The payments of $100 continue for as long as necessary, and then a smaller payment is made one year after
the last payment of $100. Determine the total number of payments needed to repay this loan, and the size
of the last payment, if the effective annual rate is 4%.
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