Find the balance of the loan right

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Reference no: EM13921041

Houston Corporation has borrowed $2 million from San Antonio National Bank with the following terms:

(A) San Antonio National Bank will charge interest at .6% per month on unpaid balance.

(B) Houston will make monthly instalments starting at $100,000 per month, but increase them by $1000 per month thereafter until the loan is paid off. That is, the monthly payments are $100,000, $101,000, $102,000, etc.

Find the balance of the loan right after the 15th payment. Show solutions

Reference no: EM13921041

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