What is the equivalent uniform monthly payment


Problem

You owe your best friend $2,000. Because you are short on cash, you offer to repay the loan over 12 months under the following condition. The first payment will be $100 at the end of month one. The second payment will be $100 + G at the end of month two. At the end of month three, you'll repay $100 + 2G. This pattern of increasing G amounts will continue for all remaining months

a. What is the value of G if the interest rate is 0.5% per month?

b. What is the equivalent uniform monthly payment?

c. Repeat Part (a) when the first payment is $150 (i.e., determine G).

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What is the equivalent uniform monthly payment
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