Question

For a repayment schedule that starts at EOY four at ​$Z and proceeds for years 4 through 9 at ​$2Z​, ​$3Z​,..., what is the value of Z if the principal of this loan is ​$10 comma 000 and the interest rate is 7​% per​ year? Use a uniform gradient amount​ (G) in your solution.

Answer 1

Answer:

$778.05625

Explanation:

The computation of the amount of repayment is shown in the attachment below:

Given that

Proceeds for year 4 through 9 at $2Z​, ​$3Z

The Principal of the loan amount = $10,000

Interest rate = 7% per year

Based on the given information, the value of Z or the amount of repayment is  

= Principal of the loan amount ÷ Total annuity

= $10,000 ÷ 12.85254119

= $778.05625