Question

Delaney takes out a $500,000 loan to open a new bar. He will repay the loan in 200 monthly installments, beginning 1 month from now. If he pays equal amounts of principal every month, what will be his third payment

Answer 1

the question is incomplete, since you need an APR rate. I looked for similar question and the effective interest rate was 15%:

Delaney will pay $500,000 / 200 = $2,500 in principal every month.

1. His first payment will be = ($500,000 x 15% x 1/12) + $2,500 = $6,250 + $2,500 = $8,750
2. His second payment will be = ($497,500 x 15% x 1/12) + $2,500 = $6,218.75 + $2,500 = $8,718.75
3. His third payment will be = ($495,000 x 15% x 1/12) + $2,500 = $6,187.50 + $2,500 = $8,687.50