Determine the original monthly payment made to the


Emily Wang financed her office furniture from a furniture dealer. The dealer's terms allowed her to defer payments (including interest) for six months and to make 36 equal end-of-month payments thereafter. The original note was for $15,000, with interest at 9% compounded monthly. After 26 monthly payments, Emily found herself in a financial bind and went to a loan company for assistance. The loan company offered to pay her debts in one lump sum if she would pay the company $186 per month for the next 30 months.

(a) Determine the original monthly payment made to the furniture store.

(b) Determine the lump-sum payoff amount the loan company will make.

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Financial Management: Determine the original monthly payment made to the
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