Dan borrowed $19,180. The loan is to be repaid by three equal payments due in 89,...

Dan borrowed $19,180. The loan is to be repaid by three equal payments due in 89, 120, and 291 days from now respectively. Determine the size of the equal payments at an interest rate of 10% with a focal date of today.

The size of the equal payments is $___

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

Solutions

Expert Solution

loan amount is $19,180.

Present value of payments must be equal to loan amount.

Equal amount of payments is $6,690.06.

jeff jeffy answered 2 years ago

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