A loan of $100,000 is paid off by an increasing series of annual payments starting at $10,000 one year from now. The payments increase by an amount of $1,000 until the loan is paid off. Hence the second payment is $11,000, the third payment is $12,000, and so on. The effective annual interest rate on the loan is 10%.
How much principal is paid off in the tenth payment?
Is there a formula to solve this? If not, show the schedule of payments. (Use Actuarial Notation/Method)
Answer says it is $13,579