You agree to make payments on student loans. Starting on the 8th month, 11 payments will be for $673.59 each month. Then after a break of not paying anything, you will start paying on the 36th month, 32 payments of $503.48 each. The interest rate is 1.39%. The bank offers to discount 7% of your balance if you pay it all upfront now. How much would you have to pay now in order to take advantage of the discount

You agree to make payments on student loans. Starting on the 8th month, 11 payments will be for $673.59 each month. Then after a break of not paying anything, you will start paying on the 36th month, 32 payments of $503.48 each. The interest rate is 1.39%. The bank offers to discount 7% of your balance if you pay it all upfront now. How much would you have to pay now in order to take advantage of the discount

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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name the account to be debited and the name of the account to be credited for each transaction. *
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How would I calculate this problem? I just guessed on which answer made sense to me. Please help. thank you in advance.
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