Question
A debt of $1976 was due 149 days ago and one of $1613 is due in 196 days. A credit advisor decides you should settle
A debt of $1976 was due 149 days ago and one of $1613 is due in 196 days. A credit advisor decides you should settle the debts with two equal payments: the first payment is to be made today and the second in 338 days from today. Find the size of the equal payments if interest is 3.6% per annum. Use today as your focal date, and give your answer rounded to the nearest cent.
Note: It is simple interest, nothing related to compounding frequency. Use the info for the 2 year period with 0 as FV to find PV. Use that PV to input as FV for 3 year period. Find PV of 3 year period and that is your answer
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