A Loan Is to Be Repaid by $1,000 in One

question 269

Short Answer

A loan is to be repaid by $1,000 in one year and $1,500 in three years. The borrower has asked to repay $1,000 in two years and a final payment in three years. If money can earn 8% compounded quarterly, what is the size of the final payment?

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Definitions:

Female Vagina

A muscular and tubular part of the female genital tract, extending from the vulva to the cervix, the lower part of the uterus.

Ductus Deferens

A tube in the male reproductive system that transports sperm from the epididymis to the ejaculatory ducts.

Scrotum

The pouch of skin containing the testicles and parts of the male reproductive system.

Ejaculatory Duct

A duct through which semen is ejaculated, connecting the vas deferens and seminal vesicles to the urethra.