Three Equal Payments Were Made One, Two, and Three Years

question 186

Short Answer

Three equal payments were made one, two, and three years after the date on which a $10,000 loan was granted at 10.5% compounded monthly. If the balance immediately after the third payment was $5,326.94, what was the amount of each payment?

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Definitions:

Illusory Correlation

A cognitive bias in which people perceive a relationship between two variables even when no such relationship exists.

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Illusory Correlation

The phenomenon of perceiving a relationship between variables even when no such relationship exists.

Social Traits

Characteristics or qualities that define an individual's interactions and relationships with others in a social context.