Kenworth Imaging got a $700,000 loan that came with a choice of two different repayments...
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Kenworth Imaging got a $700,000 loan that came with a choice of two different repayments schedules. In Plan 1, the company would have to repay the loan in 4 years with four equal payments at an interest rate of 10% per year. In plan 2, the company would repay the loan in 3 years, with each payment twice as large as the preceding one. How much larger in dollars was the final payment in Plan 2 that the final payment in Plan 1?
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