To repay a loan of $20,000, a series of nineteen level payments is to be made with the first payment in one year and each subsequen payment two years after the preceding one. The annual effective interest rate is 3.5%. Find the payment amount.
To repay a loan of $20,000, a series of nineteen level payments is to be made with the first payment in one year and each subsequen payment two years after the preceding one. The annual effective interest rate is 3.5%. Find the payment amount.
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 15P
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![To repay a loan of $20,000, a series of nineteen level payments is to be made with the first payment in one year and each subsequent
payment two years after the preceding one. The annual effective interest rate is 3.5%.
Find the payment amount.
Possible Answers
A $1,459
B $1,685
c $1,729
D $1,887
E $1,953](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff992123b-8043-4cda-baec-1be663f3d312%2F15255779-ebac-451f-8ac9-94c133afc9ef%2F4p55fp9_processed.png&w=3840&q=75)
Transcribed Image Text:To repay a loan of $20,000, a series of nineteen level payments is to be made with the first payment in one year and each subsequent
payment two years after the preceding one. The annual effective interest rate is 3.5%.
Find the payment amount.
Possible Answers
A $1,459
B $1,685
c $1,729
D $1,887
E $1,953
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