10. A loan of $28,000.00, made 12 months ago, will be repaid by 3 equal payments onetoday, one in 7 months, and one in 17 months. What is the amount of each of the equalpayments if the interest rate is 5.115% C/M?
Added by Christina C.
Step 1
00, we will use the concept of present value (PV) of future cash flows. The payments will be made at different times, so we need to discount each payment back to the present value using the given interest rate of 5.115% compounded monthly. Show more…
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