To pay off a loan of R7 000 due now and a loan of R2000 due in 14 months' time, Olorato agrees to make three payments in two, five and ten months' time respectively The second payment is to be double the first and the third payment is to be triple the first. What is the size of the payment at month five if interest is caleulated at 16% per year, compounded monthly? R4 627,26 12 R3 164,86 13 R3 000,00 14 RI 582,43
To pay off a loan of R7 000 due now and a loan of R2000 due in 14 months' time, Olorato agrees to make three payments in two, five and ten months' time respectively The second payment is to be double the first and the third payment is to be triple the first. What is the size of the payment at month five if interest is caleulated at 16% per year, compounded monthly? R4 627,26 12 R3 164,86 13 R3 000,00 14 RI 582,43
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
Related questions
Question
![To pay off a loan of R7 000 due now and a loan of R2000 due in 14 months' time, Olorato agrees to make
three payments in two, five and ten months' time respectively The second payment is to be double the first
and the third payment is to be triple the first. What is the size of the payment at month five if interest is
calculated at 16% per year, compounded monthly?
1 R4 627,26
12) R3 164,86
13] R3 000,00
H RI 582,43](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23ce7192-a0d4-4b0a-a98b-b7139584a96e%2Fb41b83ab-3dbe-4239-988a-9bea44d29082%2Fhxuwfff_processed.jpeg&w=3840&q=75)
Transcribed Image Text:To pay off a loan of R7 000 due now and a loan of R2000 due in 14 months' time, Olorato agrees to make
three payments in two, five and ten months' time respectively The second payment is to be double the first
and the third payment is to be triple the first. What is the size of the payment at month five if interest is
calculated at 16% per year, compounded monthly?
1 R4 627,26
12) R3 164,86
13] R3 000,00
H RI 582,43
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
