A Debt of $1410

question 123

Essay

A debt of $1410.00 due 6 months ago and a second debt of $1815.00 due in 4 months with interest at 6.16% p.a. are to be settled by two equal payments due now and 9 months from now respectively. Find the size of the equal payments at 7.37% p.a. with the agreed focal date now.

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Definitions:

Utility Schedule

A table or graph showing the level of satisfaction or utility that a consumer derives from consuming different quantities of a good or service.

Marginal Utility

The additional satisfaction or benefit a consumer receives from consuming one more unit of a good or service.

Newspaper

A publication, generally made of paper and ink, that is distributed on a regular or daily basis and contains news, articles, advertisements, and other information of public interest.

Marginal Utility

The supplementary contentment or value a shopper obtains by buying an extra unit of a certain item or service.