Question

A demand loan of ​$8000.00 is repaid by payments of ​$4000.00 after two ​years, ​$4000.00 after four ​years, and a final payment after seven years. Interest is 9​% compounded monthly for the first two ​years, 10​% compounded semi- annually for the next two ​years, and 10​% compounded monthly thereafter. What is the size of the final​ payment?

The final payment is ​$ ?.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

Answer 1

Size of the final payment=((8000*(1+9%/12)^(12*2)-4000)*(1+10%/2)^(2*2)-4000)*(1+10%/12)^(12*3)
=3737.106114