Two Debt Payments, the First in the Amount of $1600

question 2

Essay

Two debt payments, the first in the amount of $1600.00 due today, and the second in the amount of $7200.00 due in 15 months with interest at 9.6% p.a. compounded quarterly, are to be settled by a payment of $3400.00 nine months from now and a final payment in 21 months. Determine the size of the final payment if the money is worth 12.12% p.a. compounded monthly.

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Definitions:

Discounts

Reductions applied to the regular price of goods or services, often used as a sales promotion strategy.

Free Merchandise

Products offered at no cost, typically as part of a promotional effort to attract attention or goodwill.

Indirect Approach

A strategy that addresses objectives or situations in a less straightforward manner, often using suggestions, implications, or other less direct methods.

Refusing Claim

The act of denying or rejecting a request, demand, or assertion, often in a formal or official context.