Higuel owes $650 in 3 years and $1500 in 8 years. However, Miguel is unable to meet his $650 obligation at the end of 3 years. By mutual agreement with the lender Miguel is allowed to pay off both obligations at the end of 6 years based on a simple interest rate of 17.25%. Determine the amount required to settle the dette at the end of 6 years.

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Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.