Question

Claire has borrowed . She plans to pay off the loan in full after two payments. She will make one payment 3 years from now, then another payment 6 years from now. The second payment will be exactly double the amount of the first payment. How much is the first payment if the interest rate of the loan is , compounded annually

Answer 1

$2,489.05

Step-by-step explanation:

PMT=5000 / (1*1.085^-3 + 2*(1.085^-6))

PMT = $2,489.05