Thread: Finding X using a focal Date: Mr.D borrows $2000 now and$3000 in 4 months.

1. Finding X using a focal Date: Mr.D borrows $2000 now and$3000 in 4 months.

Q)Mr.D borrows $2000 now and$3000 in 4 months. He agrees to pay $X in6 months and$2X in 8 months (from now). Determine X using a focaldate 8 months from now at simple interest rate r = 12%.

So far I have only plotted the dates on a timeline.

2. You'll need to know how to calculate simple interest for a number of months. Please demonstrate any such calculation.

3. Originally Posted by math12
Q)Mr.D borrows $2000 now and$3000 in 4 months. He agrees to pay $X in6 months and$2X in 8 months (from now). Determine X using a focaldate 8 months from now at simple interest rate r = 12%.
Why are you calling it a focal date?
Shouldn't it simply be "final payment date"?

By simple interest, do you mean (1+ i)^12 = 1.12,
which means ~11.3865 annual compounded monthly?

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