Equal Payments Issue

[imjohnl]

This is probably an easy one but I have racked my brain trying to figure it out and am stumped.

A $9000 loan is to be repaid in three equal payments occurring 60, 180, and 300 days, respectively, after the date of the loan. Calculate the size of these payments if the interest rate on the loan is 7¼%. Use the loan date as the focal date.

Thank you in advance for any help.

 

[imjohnl]

Simple Interest

7.25% compounded every 30 days?

No - it is simple interest calculation. Meaning 7.25% annualy.

 

[tkhunny]

Just build it.

Loan Date: 9,000.00

60 Days: 9000(1+.0725*(60/360)) - Payment = Q

180 Days: Q(1+.0725*((180-60)/360)) - Payment = R

360 Days: R(1+.0725*((360-180)/360)) - Payment = 0

That's about it. A little algebra remains.