Debt Payments of $800

question 37

Essay

Debt payments of $800.00 due now and $1400.00 due in five months are to be repaid by a payment of $1000.00 in three months and a final payment in eight months. Calculate the size of the final payment if interest is 6%.

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Definitions:

Air Currents

Movements of air resulting from differences in air temperature and pressure, contributing to weather patterns and climactic conditions globally.

Northern Hemisphere

The half of Earth that is north of the equator, covering continents including North America, Europe, and most of Asia and Africa.

Southern Hemisphere

The half of Earth that lies south of the equator.

Rainshadow

A dry area on the leeward side of a mountainous area, where precipitation is significantly reduced due to the blocking of moist air and precipitation by the mountains.