A $9,000 loan is to be repaid in three equal payments occurring 60, 180, and 300 days, respectively, after the date of the loan. Calculate the size of these payments if the interest rate on the loan is 7 1/4%. Use the loan date as the focal date.

Assume simple interest rate of 7.25% p.a. and three equal payments of $x.

Future value of capital after 300 days
= 9000*(1+300/365*0.0725)
Future value of 3 equal payments made at 60, 180 and 300 days
= x + x*(1+180/365*0.0725) + x*(1+240/365*0.0725)
Equating the two and solving for x,
x=$88954047/28762= $3,092.76

2.53

25,000 at 12.35 x18months

To calculate the size of the loan payments, we can use the concept of present value. Present value is the value today of a future cash flow, considering the time value of money.

To calculate the size of the payments, we need to find the present value of the loan amount considering the interest rate and time.

Step 1: Convert the interest rate to decimal form
First, we need to convert the interest rate from a percentage to decimal form. In this case, the interest rate is 7 1/4%, which is equivalent to 7.25% or 0.0725 in decimal form.

Step 2: Calculate the present value of the loan
Next, we calculate the present value of the loan amount using the formula:

Present Value = Future Value / (1 + interest rate)^time

Where:
- Future Value: The loan amount of $9,000
- Interest Rate: 0.0725 (in decimal form)
- Time: The number of days from the loan date to each payment date

For the first payment occurring 60 days after the loan date:
Present Value (payment 1) = $9,000 / (1 + 0.0725)^60

For the second payment occurring 180 days after the loan date:
Present Value (payment 2) = $9,000 / (1 + 0.0725)^180

For the third payment occurring 300 days after the loan date:
Present Value (payment 3) = $9,000 / (1 + 0.0725)^300

Step 3: Calculate the size of each payment
Finally, we divide the present value of the loan amount by 3 to determine the size of each payment:

Payment Size = Present Value / 3

Now, you can use the formula above along with the given loan amount and interest rate to calculate the size of each payment occurring on the specified dates.