Engineering Economics homework problems
Earl wants to obtain a loan with interest rate of 10% per year. He would pay yearly payments for
6 years. The maximum amount he is able to pay is $5,000 in his last payment if he pays $200
more each time with respect to the previous payment. Considering the maximum loan he could
get under these circumstances, how would he have to pay such a loan if instead of fixed amount
incremental payments, he would have to pay incremental payments of 20% with respect to the
I am not sure where to begin on this particular problem, can you please help me?