How to have the necessary funds to pay off the loan

Assignment Help Econometrics

Reference no: EM13200993

You borrowed $20,000 from your uncle to finance your college education. Your uncle is very flexible in your repayment plan, but he will charge an 8% interest compounded annually for any unpaid balance. Suppose your payment plan is as follows:

Payment 1: $5,000 two years from now
Payment 2: $7,000 three years from now
Payment 3: $X five years from now

How much money do you need to come up with in year 5 (payment 3) to ensure you have the necessary funds to pay off the loan?

Reference no: EM13200993

Questions Cloud

Define height after t seconds is given by the equation : If an object is propelled upward from a height of 96 feet at an initial velocity of 80 feet per second, then its height after t seconds is given by the equation

Describe null hypothesis that quantities are uncorrelated : Suppose in a random sample of 353 grad student teachers, the correlation between annual salary increases and teaching evaluations is found to be 0.11. Test at the 5% significance level , the null hypothesis that the quantities are uncorrelated.

Demonstrate mathematically that atc and avc are not parallel : Total cost and total variable cost are parallel, yet average total cost and average variable cost are not parallel. Demonstrate mathematically that ATC and AVC are not parallel.

State many people know that the weight of an object varies : Many people know that the weight of an object varies on different planets, but did you know that the weight of an object on Earth also varies according to the elevation of the object?

How to have the necessary funds to pay off the loan : You borrowed $20,000 from your uncle to finance your college education. Your uncle is very flexible in your repayment plan, but he will charge an 8% interest compounded annually for any unpaid balance.

What is the annual equivalent worth of the project : while costs are expected to increase from $20,000 in year 1 by $10,000 each year. If there is no salvage value at the end of 5 years, what is the annual equivalent worth of the project assuming a MARR of 12%

Determine how to route the posters through the various stage : Kathleen and Lindsey are unsure how to route the posters from one stage to the next to make as many posters as they possibly can at the lowest cost. Determine how to route the posters through the various stages for Graphic Palette to minimize cost..

Role of the organization in ethical decision making : Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry and outline a training plan that will help employees at all levels-from bus boys to kitchen managers-understand and ..

State the quadrilateral is a trapezoid : Suppose that a given quadrilateral is a kite with no right angles. Which of the following is possible? a. the quadrilateral is a trapezoid

User Account

All Pages