Problem:
A loan of $1100 is made at an interest rate of 12% compounded monthly. The loan is to be repaid with 3 payments:
- $300 at the end of the first year
- $1000 at the end of the sixth year
- the balance at the end of the eighth year
Required:
Question: Calculate the amount of the final payment.
Note: Please provide equation and explain comprehensively and give step by step solution.