Two Obligations of $835 Each, Due 90 Days Ago and 35

question 63

Essay

Two obligations of $835 each, due 90 days ago and 35 days ago respectively, are to be settled by two equal payments to be made today and 65 days from now respectively. If interest allowed is 8.75% and the agreed focal date is today, what is the size of the equal payments?

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Definitions:

Buyer

The buying center participant who handles the paperwork of the actual purchase.

Purchase Order

A formal document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

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Business-to-business marketing, which involves selling products or services from one business to another, as opposed to consumer marketing.

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A website created by a company and often used to educate customers.