Houston Corporation has borrowed $2 million from San Antonio National Bank with the following terms:
(A) San Antonio National Bank will charge interest at .6% per month on unpaid balance.
(B) Houston will make monthly instalments starting at $100,000 per month, but increase them by $1000 per month thereafter until the loan is paid off. That is, the monthly payments are $100,000, $101,000, $102,000, etc.
Find the balance of the loan right after the 15th payment. Show solutions