On a loan of $3,000 at an interest rate of 12% per year when half of the loan pr

Question

On a loan of $3,000 at an interest rate of 12% per year when half of the loan principal is repaid as a lump sum at the end of four years and the other half is repaid in one lump sum amount at the end of eight years, and if the interest is not paid each year but added to the outstanding principal plus accumulated interest, how much interest will be due to the lender as a lump sum at the end of the eighth year?

My approach is as below, but I couldn't get the answer that's any closer to the answers provided.

if you think i'm have fully understood the question, feel free to correct me.

thanks in advance.

Explanation / Answer

I think you can proceed as follows : At the end of 8th year :-> outstanding amount, x = FV of loan - FV of payments => x = 3000(1+0.12)^8 - (1500(1+0.12)^4 + 1500) = 3567.61 ($) (ANSWER)

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