Question

A loan of $500 is to be paid with two payments of $300, one in 3 months, and another in 6 months. The compound interest charged per-annum on the loan is:

Answer 1

$$\$500= \dfrac{300}{(1 + r)^3} + \dfrac{300}{(1 + r)^6}$$

Where $r$ is the compound interest charged.

Using a financial calculator, we get:

$$\color{red}{r = 4.18\%}$$