$600 due in 3 yrs, $800 due in 4; repaid in single pymt in 2

A debt of $600 due in three years and $800 due in four years is to be repaid by a single payment two years from now. if the interest rate is 8% compounded semiannually, how much is the payment?

golazin said:

A debt of $600 due in three years and $800 due in four years is to be repaid by a single payment two years from now. if the interest rate is 8% compounded semiannually, how much is the payment?

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What formulas have they given you? What have you tried? How far did you get? Where are you stuck?

Please be complete. Thank you!

Eliz.

Hey What I did is:

600(1.04)^-2+800(1.04)^-4= $1238.58

Im not sure if this is right or not?

Rest assured that is only barely related to the solution.

1) What are you doing? Why are you presenting this material? Is it a class? Why are you registered for it?

2) Show ALL your work or I'm tempted simply to start deleting your posts. Really, I don't mean to be threatening, but you've got to start showing some effort or you never will get anywhere.

3) You have shown extremely little understanding of the most basic and fundamental concepts needed to conquer this material. You need to have a very long talk with your academic advisor before you think you will be moving on.

Yeah this is my HW for the math class which suddenly it became finance class from second block since the teacher decided to show us some finance mathematics. That is true I don’t have any idea of these. He didn’t really teach us this stuff. He gave us his notes which are all examples with their solutions, and I have no idea what is going on with them. Also, the HW is way different than the samples.

Well, somewhere, you must encounter the concept of compounding for different periods. Can you find that section in your book or is this section from supplemental material?

We don't have the book for this section :? I have only his notes

That's no good. I wish I knew what to tell you. Buy a book?