Duane Borrowed $3,000 from His Grandmother Five Years Ago

question 47

Short Answer

Duane borrowed $3,000 from his grandmother five years ago. The interest on the loan was to be 5% compounded semi-annually for the first three years, and 6% compounded monthly thereafter. If he made a $1,000 payment 2½ years ago, what is the amount now owed on the loan?

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Definitions:

Venture Philanthropy Funding

A type of funding that combines venture capital principles with philanthropy to invest in social ventures that aim to generate social impact alongside financial returns.

Financial Assistance

The provision of resources, typically money, to individuals, businesses, or organizations to support them financially.

Venture Philanthropy Partners

An investment approach that applies venture capital strategies to philanthropy, focusing on building the capacity and sustainability of non-profits.

Impact-Investment Fund

A fund dedicated to investments made with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return.