Interest and Repayment Help: Determine the size of the replacement payment if...

[cfabre33]

Two debts ---- the first of $800 due six months ago and the second of $1400 borrowed one year ago for a term of three years at 6.5% compounded annually ---- are to be replaced by a single payment one year from now. Determine the size of the replacement payment if interest is 7.5% compounded quarterly and the focal date is one year from now.

 

[Deleted member 4993]

Two debts ---- the first of $800 due six months ago and the second of $1400 borrowed one year ago for a term of three years at 6.5% compounded annually ---- are to be replaced by a single payment one year from now. Determine the size of the replacement payment if interest is 7.5% compounded quarterly and the focal date is one year from now.

What are your thoughts?

Please share your work with us ...even if you know it is wrong.

If you are stuck at the beginning tell us and we'll start with the definitions.

You need to read the rules of this forum. Please read the post titled "Read before Posting" at the following URL:

http://www.freemathhelp.com/forum/announcement.php?f=33