Answered

Discover a wealth of knowledge at Westonci.ca, where experts provide answers to your most pressing questions. Explore a wealth of knowledge from professionals across different disciplines on our comprehensive platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Assume you borrow $10,000 today and promise to repay the loan in two payments, one in year 2 and the other in year 4, with the one in year 4 being only half as large as the one in year 2. At an interest rate of 10% per year, the size of the payment in year 4 will be closest to:

Sagot :

Tundexi

Answer:

$4,281.19

Explanation:

The standard notation equation is P = F(P/F, i, n) where the value of the factor is seen in the compound interest factor table.

Let the amount deposited in year 4 be A, we calculate the value of A as follows

10,000 = 2A(P/F, 10%, 2) + A(P/F, 10%, 4)

10,000 = 2A(0.8263) + A(0.683)

2.3358A = 10,000

A = 10,000 / 2.3358

A = 4281.188457915917

A = $4,281.19.

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.