# Renaldo borrows $8,000 at 6% compounded annually and agrees to repay at the following schedule:?

Answers:2 | LastUpdateAt:2012-11-05 16:14:03

**Q**uestion- Janeille
- Asked at 2012-08-18 16:24:02

Renaldo borrowed $ 8000 from his aunt today to help pay college expenses. He agrees to pay the loan in accordance with the following schedule , at a rate of 6 percent / year compounded annually.

End of Year Cash Flow

0

$ 8000
1

$ 0
2

$ 0
3

$ 0
4

$ 0
5 - $ X

6 - ( X + 100)

7 - ( X + 400)

8 - $

2X

a) Find the value of X such that the loan is fully repaid with the last payment.

Answer1KeslerAnswered at 2012-09-18 05:09:03

x + ( x 100) + (400 x ) +2 x = 8000 MedlinePlus
MedlinePlus
500 x 3 x 2 = 8000 MedlinePlus
MedlinePlus
5x = 7500 MedlinePlus
MedlinePlus
x = 1500

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Question:**Renaldo borrows $8,000 at 6% compounded annually and agrees to repay at the following schedule:?**