Monday
April 21, 2014

Homework Help: Simple Interest

Posted by Thara on Friday, July 31, 2009 at 12:53am.

A $4000 loan made at 11.75% is to b repaid in three equal payments, due 30, 90, and 150 days, respectively, after the date of the loan. Detemine the size of the payments.

Let the amount of each payment be represented by x.

P1=
______x__________=0.9904349x
1 + 0.01175(30/365)


P2=
_______x__________=0.9718432x
1 + 0.01175(90/365)


P3=
_______x__________=0.9539366x
1 + 0.01175(150/365)


$4000= P1 + P2 + P3

= 0.9904349x + 0.9718432x
+ 0.9539366x

=2.916215x

x= ___$4000___
2.916215

x= $1371.64

Therefore, each payment should be $1371.64.

My question is how do i get the answer in P1=0.9904349x, P2=0.9718432x, and
P3=0.9539366x. Just show me for one of them then i can understand how to do it for the rest. Thanks.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

math(simple interest) - A $9,000 loan is to be repaid in three equal payments ...
compund interest - Payments of $1800 and $2400 weere made on a $10,000 variable-...
Compound Interest - Payments of $1,800 and $2,400 were made on a $10,000 ...
Compound Interest : Future Value and Present Value - Payments of $1800 and $2400...
business math - Term of Loan/Date of Loan using Banker's Rule? I need helps in ...
financial management - suppose you purchase a home for $150,000.and obtain a 90...
Geometric Prorgession - A bank loan of $500 is arranged to be repaid in two ...
college math - A $8700 personal loan at 5.5% compounded monthly is to be repaid ...
college math - A $8700 personal loan at 5.5% compounded monthly is to be repaid ...
MATH - Martin takes out a simple-interest loan at 7.5 %. After 6 months, the ...

Search
Members