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Calculate the sizes of the two payments

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Reference no: EM131455727

A person wants to borrow $2500. He will repay by making two payments, one at the end of the first year afer he obtains the funds, and one at the end of the second year. The second payment will be twice as large as the first payment.

Calculate the sizes of the two payments, assuming that the market interest rate is 10%

HINT: This is an algebra problem. Let X represent the value of the first payment.

Reference no: EM131455727

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