Question
1. Vincent was supposed to pay Anthony $3,800, 6 months ago, and $1,320, 5 months from now. If he wants to reschedule these payments with
1. Vincent was supposed to pay Anthony $3,800, 6 months ago, and $1,320, 5 months from now. If he wants to reschedule these payments with two payments, one payment of $4,000 today and the balance 3 months from now, calculate the balance amount. Assume that the simple interest charged is 5.50% p.a. and the agreed focal date is 3 months from now.
2. Tabitha had to pay her friend $800, 4 months ago and she has to pay $680 in 3 months. If her friend was charging her an interest rate of 1.00% per month, what single payment would settle both payments today?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started