A debt of $3000 is due in 4 months and another $5000 is due in 9...

A debt of $3000 is due in 4 months and another $5000 is due in 9 months. Instead, it is agreed that a payment of $X, made in 3 months, followed by a payment of $4000 in 10 months, will fully pay off the loan. Using 9 months as the focal date, what is X if the simple interest rate on the loan is r = 10%?

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago

A debt of RM900 due in five months and another of RM1000 due in ten months...

A debt of RM900 due in five months and another of RM1000 due in ten months are to be settled by a single payment at the end of seven months. Find the size of this payment using a. The present as the focal date, b. The date of the settlement as the focal date Assuming the money is worth 8% per annum simple interest.

Jolene must pay liabilities of 1000 due 6 months from now and another 3000 due one...

Jolene must pay liabilities of 1000 due 6 months from now and another 3000 due one year from now. There are two available investment: Bond I is a 6-month bond with face amount and redemption value of 1000, a 7% semiannual coupons, and a 5% nominal annual yield rate convertible semiannually. Bond II is a one-year bond with face amount and redemption value of 1000, a 4% semiannual coupon, and a 6% nominal annual yield rate convertible semiannually. Suppose that...

Jamal has two debts to pay. A $4500 due in 6 months from today and a $5000 due in 18 months from today.

Jamal has two debts to pay. A $4500 due in 6 months from today and a $5000 due in 18 months from today. Instead, he wants to make a single $9500 payment to settle both debts. Find the time he needs to make that payment. Assume interest rate to be 6% p.a. compounding quarterly

Scheduled debt payments of $750 due seven months ago, $600 due two months ago, and $900...

Scheduled debt payments of $750 due seven months ago, $600 due two months ago, and $900 due in five months are to be settled by two equal replacements payments due now and three months from now. Determine the size of the equal replacement payments at 9% p.a. compounded monthly.

Joe must pay liabilities of 1,000 due six months from now and another 1,000 due one...

Joe must pay liabilities of 1,000 due six months from now and another 1,000 due one year from now. There are two available investments which may be purchased in any amount: 6-month bond with face amount of 1,000, 8% nominal annual coupon rate convertible semiannually, and 6 nominal annual yield rate convertible semiannually. 1-year bond with face amount of 1,000, 5% nominal annual coupon rate convertible semiannually, and 7% nominal annual yield rate convertible semiannually. What is the annual effective...

Find the amount borrowed if $900 is due at the end of 4 months when an...

Find the amount borrowed if $900 is due at the end of 4 months when an annual simple interest rate of 9% is used.

Details Yrs. 1 2 3 4 5 6 7 8 Sales (units) 3000 5000 6000 6500...

Details Yrs. 1 2 3 4 5 6 7 8 Sales (units) 3000 5000 6000 6500 6000 5000 4000 3000 Fixed Costs 25000 25000 25000 25000 25000 25000 25000 25000 Annual Depreciation 114320 195920 139920 99920 71440 71440 71440 35600 1. Project X is being appraised and has the following details: The following information is also available: Unit selling price is expected to be $120 for the first 3 years then fall to $110 thereafter. Unit variable costs will remain...

Question

A debt of $3000 is due in 4 months and another $5000 is due in 9...

Solutions

Expert Solution

Related Solutions