What is the payment size when interest

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You borrow $42,000 and repay the loan with 6 equal annual payments. The first payment occurs one year after receipt of the $42,000 and you pay 8% annual compound interest.

a) Solve for the payment size.

b) What is the payment size when interest is 8% compounded monthly, and monthly payments are made over 6 years?

c) What is the payment size when interest is 8% compounded semiannually, and annual payments are made over 6 years?

d) What is the payment size when the first payment is not made until 10 years after receipt of the $42,000?

Reference no: EM131006159

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