How much will the second and third payments be

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Q1. The K-Mart store has been charging 2.55% per month on its credit card. In response to lower prevailing interest rates, the board of directors has agreed to reduce the card's effective interest rate by 3%. To the nearest 0.01%, what will be the new periodic interest rate (per month)?

Q2. Justin borrowed $4000 from Dylan at an interest rate of 5% compounded semiannually. Justin agreed to pay his loan by three payments. The first payment, $1000, is due 2 years after the date of the loan. The second and third payments are due 3 and 5 years, respectively, after the initial loan. How much will the second and third payments be if the loan agreement requires that those two payments be equal in amount?

Reference no: EM133116046

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