Calculate the amount of eliza fifth payment

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Reference no: EM132032015

Eliza takes out a $36,000 loan at an annual effective interest rate of 6%. It is agreed that at the end of each of the first six years she will pay $1,800 in principal, along with the interest due, and that at the end of each of the next eight years she will make level payments of $2,500. Eliza will make on final payment at the end of fifteen years to exactly complete her loan obligation. Calculate the amount of Eliza’s fifth payment, the amount of her tenth payment, and the amount of her fifteenth payment. The answers are fifth=3528, tenth=2500, and 15th=16346.58. Please show steps leading to answer without use of excel.

Reference no: EM132032015

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