What should x be if the nominal monthly rate is 8%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 10P
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5267.26,1691.85,281.53

 

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A loan of $40,000 is paid off in 36 payments at the end of each month in the following way:
Payments of $1000 are made at the end of the month for the first 12 months.
Payments of $1000 + x are made at the end of the month for the second 12 months.
Payments of $1000 + 2x are made at the end of the month for the last 12 months.
What should x be if the nominal monthly rate is 8%?
Transcribed Image Text:A loan of $40,000 is paid off in 36 payments at the end of each month in the following way: Payments of $1000 are made at the end of the month for the first 12 months. Payments of $1000 + x are made at the end of the month for the second 12 months. Payments of $1000 + 2x are made at the end of the month for the last 12 months. What should x be if the nominal monthly rate is 8%?
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