Dr. Sawicki obtained a variable-rate loan of $10,000. The lender required payment of at least $2,000 each year. After nine months the doctor paid $2500, and another nine months later she paid $3,000. What amount was owed on the loan after 2 years if the interest rate was 6.6% compounded monthly for the first year, and 7% compounded quarterly for the second year?

Question

Quizplus · Accepted Answer

The Answer of Dr. Sawicki obtained a variable-rate loan of $10,000. The lender required payment of at least $2,000 each year. After nine months the doctor paid $2500, and another nine months later she paid $3,000. What amount was owed on the loan after 2 years if the interest rate was 6.6% compounded monthly for the first year, and 7% compounded quarterly for the second year?

Dr Sawicki Obtained a Variable-Rate Loan of $10,000