Kramer Borrowed $6,000 from George at an Interest Rate of 6

question 199

Multiple Choice

Kramer borrowed $6,000 from George at an interest rate of 6% compounded quarterly. The loan is to be repaid by three payments. A payment of $2,000 is due two years after the date of the loan. The second and third payments are to be of equal amounts and are to be paid three and five years after the date of the original loan. Calculate the size of the last two payments.

• A) $2,481.63
• B) $2.406.52
• C) $2,675.71
• D) $2,277.43
• E) $2,197.91