Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Science-Related Homework Help Mathematics
New Topic  
anymous anymous
wrote...
Go to Answer
Posts: 134
Rep: 0 0
10 months ago
Two debt payments of $2000 each are due now and nine months from now. If money is worth 8%, what single payment six months from now is required to settle the debt?

▸ $4042.34

▸ $7177.27

▸ $6127.48

▸ $3600.00

▸ $4040.78
Textbook 
Business Mathematics in Canada

Business Mathematics in Canada


Edition: 11th
Authors:
Read 167 times
3 Replies
Replies
Answer verified by a subject expert
careytrancareytran
wrote...
#1
Posts: 118
Rep: 0 0
10 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Anonymous
wrote...
#2
9 months ago
Help! The answer is missing an explanation...
Anonymous
wrote...
#3
9 months ago
I think it is done like this:

The ans is option (c) 4042.34

Step1 :-

Pv1 = 2000 (today)

Fv2 = 2000 ( 9 months from now )

Interest yearly = IY = 8 %

Step2:-

Due date for all = 6 months from today

Step 3 :- interest rate monthly = i = 8/1200

Step4:- time interval n1 = 6 month = 12×6/12 = 6

Time interval n2 = 9-6 = 3 months = 12×3/12=3

Step 5 :- FV1 = 2000(1+8/1200)^6 = 2081.345

Pv2 = 2000(1-8/1200)^3 = 1960.5275

Step 6 :- the single payment from 6 months from now = Fv1+ pv2 = 2081.345+1960.5275 = 4041.867 ≈ 4042 (approx)
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1026 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 152
  
 129
  
 296
Your Opinion
Do you believe in global warming?
Votes: 370
Previous poll results: How often do you eat-out per week?