Business Math Lesson 10: Payment Plans, part 4
Channel: Amy Goldlist
Date: 2021-05-27

Anna borrowed $1,000 from a local loan shark on January 1, 2010, at j12=24%.  On January 1 2012, Anna paid the loan shark $500, and the loan shark agreed to lower the rate to j12=18%. 

(a)   How much money will Anna owe as of January 1, 2014?
(b)   If Anna pays the balance, how much interest will she have paid?