Answered

0 Example: Loan payments of $400 due 95 days ago and $700 due today
are to be repaid by a payment of $600 thirty days from today and the
balance in 125 days. If money is worth 6% and the agreed focal date is
125 days from today, what is the size of the final payment?​

Answer :

okpalawalter8

Answer:

[tex]X=\$519.48[/tex]

Step-by-step explanation:

From the question we are told that

Loan 1 [tex]X_1=\$400[/tex]

Loan 1 due [tex]t_1=95days[/tex]

Loan 2 [tex]X_2=\$700[/tex]

Loan 2 due[tex]t_2=0days[/tex]

Payment [tex]Y=\$600[/tex]

Worth of money [tex]w=6\%[/tex]

Payment due [tex]t=30days[/tex]

Focal date [tex]t_f=125days[/tex]

Generally [tex]\$400[/tex] was due 95days ago

Therefore

[tex]125+90=220days[/tex](total days to consider)

Therefore

[tex]300+400 =700[/tex] is due today

125days left

Given

600 due in 30days

[tex]125-30=95days[/tex]

Generally the Final payment is mathematically given by

[tex]400(1+ 0.06*\frac{220}{365} ) + 700(1+0.06*\frac{125}{365} )=600(1+0.06*\frac{95}{365} )+X[/tex]

[tex]X=1128.9692 - 609.3698[/tex]

Therefore the

[tex]X=\$519.48[/tex]

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