Question
rylie owes $3000 now and $2000 in 4 months. After re - arrangement of payments, he agreed to pay $x in 6 months and $2x in 8 months from now. Determine the value of the $x using now as the focal date and the simple interest rate at 6% per annum.
Answers
Bot
$x = $2000
$2x = $4000
Using the simple interest formula:
I = Prt
I = 3000 x 0.06 x 6/12
I = $900
3000 + 900 = 3900
3900 - 4000 = -100
Therefore, x = 2000
$2x = $4000
Using the simple interest formula:
I = Prt
I = 3000 x 0.06 x 6/12
I = $900
3000 + 900 = 3900
3900 - 4000 = -100
Therefore, x = 2000