A $9,000 Loan Is to Be Repaid in Three Equal

question 135

Short Answer

A $9,000 loan is to be repaid in three equal payments occurring 60, 180, and 300 days, respectively, after the date of the loan. Calculate the size of these payments if the interest rate on the loan is 7.25%. Use the loan date as the focal date.

---

Definitions:

Taste Buds

Small sensory organs located on the tongue that allow humans to perceive different tastes.

Digestive

Pertaining to digestion.

Preicteric

Referring to the initial phase of a disease, particularly liver disease, that occurs before the onset of jaundice, where the skin turns yellow.

Jaundice

A medical condition characterized by yellowing of the skin and the whites of the eyes caused by an increase in bilirubin in the bloodstream.