Thomas P.

Prealgebra

2 months, 1 week ago

Sarah gets loans of $100 at the beginning of January, February,
and march. she pays the loan off with a payment of $X at the
beginning of June of the same, and then two more payments of $100
at the beginning of July and August. If the effective annual
interest rate is I=.08 then set up an equation of value at the
beginning of June and find X. (hint: first calculate the monthly
effective interest rate j.