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| rev | Admin | (Created page with "'''Solution: C''' After one year the outstanding balance is <math>500 a_{\left.\overline{48}\right|_{0.025}}=13,886.58</math>. This must match the present value of the revised payments: <math display = "block"> \begin{aligned} & 13,886.58=X v^6 a_{\overline{6}|0.025}+500 v^{12} a_{\overline{36}|0.025}=4.74964 X+8,757.69 \\ & X=(13,886.58-8,757.69) / 4.74964=1,079.85 \end{aligned} </math> Alternatively, each missing payment is being replaced with a larger payment six mo...") | Nov 19'23 at 1:36 | +638 |