What is the dollar amount of each of the five payments

Reference no: EM13685348

Ken loans his grandson rex $20,000 at 5.5 percent per year to help pay for executive chef schooling in Florida. Rex requires three years till he begins to earn a salary. he agrees to pay ken the loan in the following order : year 1,2,3 nothing to be paid year 4 : X, year 5 : 2X, year 6 : 3X, year 7 : 4X, year 8 : 5X

1. Discover the value of all the interest paid to ken?

2. What is the dollar amount of each of the five payments?

3. Discover the value of X such that the loan is fully repaid with the last payment.

Reference no: EM13685348

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