Posted by Jules on Saturday, July 30, 2011 at 11:29am.
John borowed 12,000 and agreed to repay the loan in six equal monthly payments plus interest of 1.5% per month on the unpaid balance. What is his total payment for the third month?

math  Reiny, Saturday, July 30, 2011 at 12:18pm
strange way to pay back a loan...
The way I read the question, you are paying $2000 per month plus the interest?
month# paym interest balance
1  2000  180.00 10000.00
2  2000  150.00 8 000.00
3  2000  120.00 6 000.00 > $2120.00
4  2000  90.00 4 000.00
5  2000  60.00 2 000.00
6  2000  30.00 0
In reality the payment would be $x, such that
12000 = x( 1  1.015^6)/.015
x = $2106.30
# payment interest repaymt balance
1 2106.30 180.00 1926.30 10073.70
2 2106.30 151.11 1955.20 8118.50
3 2106.30 121.78 1984.53 6133.98
4 2106.30 92.012014.29 4119.68
5 2106.30 61.80 2044.51 2075.17
6 2106.30 31.13 2075.17 0.00
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