A Variable Rate Demand Loan Showed an Initial Balance of $20

question 32

Essay

A variable rate demand loan showed an initial balance of $20 000.00, payments of $5000.00 after six months, $10000.00 after one year, and a final payment after two years. Interest was 6% compounded semi-annually for the first year and 12% compounded monthly for the remaining time. How much was the size of the final payment?

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Definitions:

Postponement

A strategy used in supply chain management where the final assembly or customization of a product is delayed until the last possible moment to reduce inventory costs and enhance customization.

Optimal Number

The most favorable quantity that achieves a specific goal, often related to efficiency or cost-effectiveness.

Chicken Tacos

A popular Mexican dish made from small pieces of chicken wrapped in a tortilla, often accompanied by toppings such as salsa and lettuce.

Capacity Constraint

Capacity Constraint refers to the limitations in resources, such as production capacity or logistical capabilities, that restrict the output of a system.