Question 1 Not yet answered Marked out of 3.50 P Flag question What order do you need to follow to solve simple interest and simple discount problems Select one: O A. Read the question, draw the timeline, put the values on the right point on the timeline, identify your focal date, take all values to the focal date B. Draw the timeline, identify your focal date, read the question, put the values on the right point on the timeline, take all values to the focal date O C. Draw the timeline, read the question, put the values on the right point on the timeline, identify your focal date, take all values to the focal date O D. Read the question, draw the timeline, put the values on the right point on the timeline, identify your focal date, take all values to the focal date which is usually the present point in time unless specified by the question. How will you move values on the timeline Select one: O A Identify the focal date and then take all values to the focal date. O B. Identify the focal date and then take all values to the focal date. If the focal date is in the future compared to where cashflow is located on the timeline, then we multiply with the simple interest factor of (1+rt). O C. Identify the focal date and then take all values to the focal date. If the focal date is in the future compared to where cashflow is located on the timeline, then we divide the cashflow with the simple interest factor of (1+rt). If the focal date is in the past compared to where the cashflow is on the timeline, we multiply the cashflow with the simple interest factor of (1+rt). If any of the cashflows are on the focal date, then we do not need to multiply or divide this with the simple interest factor and we can add this as it is in our equation of value. O D. Identify the focal date and then take all values to the focal date. If the focal date is in the future compared to where cashflow is located on the timeline, then we multiply the cashflow with the simple interest factor of (1+rt). If the focal date is in the past compared to where the cash flow is on the timeline, we divide the cashflow with the simple interest factor of (1+rt). If any of the cashflows are on the focal date, then we do not need to multiply or divide this with the simple interest factor and we can add this as it is in our equation of value. Question 3 Not yet answered Marked out of 3.00 P Flag question Debts of $500 due 20 days ago and $400 due in 50 days are to be settled by a payment of $600 now and a final payment 90 days from now. Determine the value of the final payment at a simple interest rate of 11% per annum with a focal date at the present. Select one: O A. 350.13 O B. 306.13 O C. 503.13 O D. 305.13
