Simple interest with focal date question
Hi guys,
I am a new student in the Business Math, and I have trouble to solve the following question that might be easy for you guys.
Courtney owes $13,000 to a friend who is charging her interest of 2.70% p.m. She is required to settle the loan with two equal payments, one today and the other in four months. Calculate the size of the payments using four months as the focal date.
The answer I got is S1=S2=$6833.02, use the formula $13000=S1/(1+rt1)+S2/(1+rt2). t1=4 mo. t2=0 and r=0.027 p.m.
Please check it for me.
Best regards.
Hi guys,
I am a new student in the Business Math, and I have trouble to solve the following question that might be easy for you guys.
Courtney owes $13,000 to a friend who is charging her interest of 2.70% p.m. She is required to settle the loan with two equal payments, one today and the other in four months. Calculate the size of the payments using four months as the focal date.
The answer I got is S1=S2=$6833.02, use the formula $13000=S1/(1+rt1)+S2/(1+rt2). t1=4 mo. t2=0 and r=0.027 p.m.
Please check it for me.
Best regards.
Last edited: