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.
1 + 0.01175(30/365)
1 + 0.01175(90/365)
1 + 0.01175(150/365)
$4000= P1 + P2 + P3
= 0.9904349x + 0.9718432x
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.
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