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majarm majarm
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6 years ago
A debt payment in the amount of $2000.00 due today, is to be settled by a payment of $1500.00 nine months from now and a final payment in 18 months. Determine the size of the final payment if the money is worth 12% p.a. compounded quarterly. Use the Banker's Method.
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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6 years ago
In 9 months: FV = 2000.00(1.03)3 = 2000.00(1.092727) = 2185.45
 Balance: 2185.45 - 1500 = 685.45
Final payment: FV = 685.45(1.03)3 = 749.01
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