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Lada Lada
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6 years ago
A debt of $4000 due today is to be settled by two equal payments due three months from now, and 9 months from now respectively. What is the size of the equal payments at 8% compounded quarterly?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
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6 years ago
Let the size of the two equal payments be $x and the focal date be now.
4000.00 = x(1.02)-1 + x(1.02)-3
4000.00 = .9803921569x + .9423223345x
4000.00 = 1.922714491x
$2080.39 = x
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