Business Math Lesson 11: Equations of Value, part 5
Channel: Amy Goldlist
Date: 25/06/2021

You borrowed $3,000 from your line of credit 8 months ago and a further $5,000 three months ago.  You arrange with the bank to pay off the line of credit with 2 payments.  The first payment, 6 months from today, will be twice as large as the second payment made one year from today.  The bank charges you 9% interest, compounded monthly.  Suggested focal Date: 6 months from today.
(a)   Find the size of each payment.     
(b)   How much interest did you pay?