Find the equation of value relative to the january

Reference no: EM132178366

Question - On January 1, 2011, Bethany took a $15,000 loan from Silent Bob. On January 1, 2013, she repaid $5,000; on January 1, 2016, she repaid an amount K; and on January 1, 2018, her outstanding balance owing to Silent Bob was $8,937.23.

(a) Suppose that the loan is made at an effective annual interest rate of 3%.

i. Find the equation of value relative to the January 1, 2011.

ii. Find the equation of value relative to the January 1, 2016.

iii. Find K.

(b) Suppose that the loan is made at an effective annual interest rate of 3% for the years 2011-2014 and an effective annual interest rate of 2% for the years 2015-2017.

i. Find the equation of value relative to the January 1, 2011.

ii. Find the equation of value relative to the January 1, 2016.

iii. Find K.

Reference no: EM132178366

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