What is the equivalent uniform monthly payment

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Reference no: EM131505775

Question: You owe your best friend $2,000. Because you are short on cash, you offer to repay the loan over 12 months under the following condition. The first payment will be $100 at the end of month one. The second payment will be $100 + G at the end of month two. At the end of month three, you'll repay $100 + 2G. This pattern of increasing G amounts will continue for all remaining months

a. What is the value of G if the interest rate is 0.5% per month?

b. What is the equivalent uniform monthly payment?

c. Repeat Part (a) when the first payment is $150 (i.e., determine G).

Reference no: EM131505775

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