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:

Stole

The past tense of steal, referring to the act of taking something without permission with the intent to permanently keep it.

Good Faith

Acting with honesty and sincerity without any intent to defraud or seek an unfair advantage.

Defective

Describing a product or good that fails to meet quality standards or does not function as intended.

Insufficient Funds

a situation where an account does not have enough money to cover a transaction, often leading to denied payments or penalties.