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Four debts of $200, $300, $400, and $500 due in two, four, six, and eight months respectively are to be re-financed by a payment of
Four debts of $200, $300, $400, and $500 due in two, four, six, and eight months respectively are to be re-financed by a payment of $100 today and the balance by two equal, but unknown, payments due six months and twelve months from today respectively. What will be the size of these payments if a settlement rate of 14.5% simple interest is used and a focal point of six months is agreed upon? Answer $2,759.59 (show work)
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