A debt of 8450 euro is amortized in 5 years and 6 months at 2% (annual) with quarterly amortization installments variable in geometric progression…

A debt of 8450 euro is amortized in 5 years and 6 months at 2% (annual) with quarterly amortization installments variable in geometric progression with first term 488.15 euro in compound convention. Knowing that the payment of the amortization installments is interupted after 6 months and for one year and 4 months, recover:

  1. The ratio of the geometric progression
  2. The effective rate of the contract for the debtor if the starting expense is 400 euro

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