Answer to Question #77226 in Engineering for Loki

Question

A start-up company selling magic scientific calculator borrows 40000 at an interest rate of 10% per year and wishes to repay the loan over a 6-year period with annual payments such that the third payment is 2000 greater than the first two. The fourth payment is 1000 greater than the third payment. The fifth payment is 1000 greater than the fourth payment and the sixth is 1000 greater than the fifth payment. Determine the size of the first payment. (Draw the cash flow diagram)

Answer 1

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