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November 30th, 2015, 11:32 AM   #1
Math Team
 
Joined: Oct 2011
From: Ottawa Ontario, Canada

Posts: 10,906
Thanks: 716

Need a loan?

A loan of 20,000 is arranged this way:
4 equal annual payments of p
extra payment of 3,000 at end of year 2 and year 4
year 1 rate: 6%
year 2 rate: 7%
year 3 rate: 8%
year 4 rate: 9%
Those rates are the effective rates;
as example, 1st year's interest = 20000* .06 = 1,200

It'll look like:
Code:
YEAR PAYMENTS   INTEREST   BALANCE 
  0                                        20000.00 
  1     -p                 1200.00        ? 
  2     -p                        ?           ? 
  2     -3000.00              .00        ? 
  3     -p                        ?           ? 
  4     -p                        ?        3000.00 
  4     -3000.00              .00            .00
If you want the loan officer job opening
at our Bank, you need to calculate p.
Good Luck!
Denis is offline  
 
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