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Roland owes three debts: $500 due in one year; $1,500 due in two years, plus simple interest at 6%; $2,000 due in three years, plus
Roland owes three debts: $500 due in one year; $1,500 due in two years, plus simple interest at 6%; $2,000 due in three years, plus simple interest at 5%. He wants to discharge these debts by paying $1,000 now and two equal but unknown payments in one and two years, respectively. Find the size of the equal payments if money is, at present, worth 10% simple interest. Use a focal date of two years. (10 marks) - I have having some trouble breaking this question down, if anyone could offer some guidance, that would be awesome! Thanks!
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