Question is : A loan of $10,000 is to be repaid in ten years by payments at the end of each year. The payments grow by 3% per year, so if the first payment is P, then the second payment is 1.03P and the third payment is (1.03)^2P. Compute the first payment, on the basis of an interest rate of 9% p.a
I have no idea how to do it. become so confused. what I have got now is the sum of ten payments is P+1.03P+1.03^2P+...+1.03^9P and the value of load after 10 years is 1000*1.09^10