What was the amount of the equal annual end-of-year payments

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Reference no: EM13148302

An engineer borrowed $3,000 from a bank, payable in six equal end-of-year payments at a interest rate at 8%. The bank agreed to reduce the interest on the loan if interest rates are declined in the US before the loan was fully repaid. At the end of 3 year after the third payment, the bank agreed to reduce the interest rate on the remaining debt from 8% to 7%. a. What was the amount of the equal annual end-of-year payments for each of ?rst 3 years? b. What was the amount of the equal annual end-of-year for each of the last 3 years?

Reference no: EM13148302

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