a person arranges to repay a a1000 bank loan in


A person arranges to repay a a$1000 bank loan in 10 equal payments at a 10% annual interest rate. Immediately after his third payment he borrows $500, also at 10% annual interest rate. When he borrows the $500, he talks the banker into letting him repay the remaining debt of the first loan and the entire amount of the second loan in 12 equal annual payments. The first of these 12 payments would be made one year after he recives the $500. compute the amount of each of the 12 payments.

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Econometrics: a person arranges to repay a a1000 bank loan in
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