Answer:
X = $374.16
Step-by-step explanation:
First we have to calculate for the amount of interest using compound interest formula
A = P(1+(r/n))^(nt)
P (principal) = 1000
r (rate) = 10% = 0.1
t (time in year) = 30
n (number of recursion per year) = 1
A = 1000(1+(0.1/1))^(1*30) = 17,449.40
Amount of compound interest for 30 years is
I = A - P = 17,449.40 -1000 = 16,449.40
Amount of interest due per year
= I/30
= 16,449.40/30 = 548.313
The guy paid the same amount of interest due for the first 10 years
548.313*10 = 5483.13
And the next 10 payments equal to 150% of the interest due (150% = 1.5 times)
548.313*10*1.5 = 8224.7
Total of paid interest is
8224.7 + 5483.13 = 13707.83
So, the balance unpaid loan is
17449.40 - 13707.83 = 3741.57
This balance payment is dividend for the last 10 years, so
3741.57/10 = 374.16
So X = $374.16
