Scheduled payments of $800 due two months ago and $1200 due in one month are to be repaid by a payment of $1000 today and the balance in three months. What is the amount of the final payment if the simple interest rate is 7.75% p.a and the focal date is one month from now?
Scheduled payments of $800 due two months ago and $1200 due in one month are to be repaid by a payment of $1000 today and the balance in three months. What is the amount of the final payment if the simple interest rate is 7.75% p.a and the focal date is one month from now?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 31P
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Scheduled payments of $800 due two months ago and $1200 due in one month are to be repaid by a payment of $1000 today and the balance in three months. What is the amount of the final payment if the simple interest rate is 7.75% p.a and the focal date is one month from now?
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