You Have Two Options Available in Repaying a Loan

question 66

Multiple Choice

You have two options available in repaying a loan.You can pay $2000 at the end of 5-months and $3000 at the end of 10-months OR you can pay $X at the end of 2-months and $3X at the end of 9-months.If the simple interest rate is r = 4% and the focal date is at the end of 5-months,what is X?

• A)$1246.89
• B)$2479.32
• C)$2685.41
• D)$2727.19

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Definitions:

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