Make a time graph from "now" to 8 months
Above the line, place 3000 at now and 2000 at month 4
Below the line place x at month 6 and 2x at month 8
Pick month 8 as your focal point and "move" all monies to that time
i = .01 , and
x(1.01)^2 + 2x = 3000(1.01)^8 + 2000(1.01)^4
x[ 1.01^2 + 2] = 5329.778
x = 5329.778/3.0201 = 1764.77
Salote owes $3000 now and $2000 in 4 months. After re-arrangement of payments,
she agreed to pay $X in 6 months and $2X in 8 months from now.
Determine the value of $X with j12 = 12% per annum.
A. $1,759.63
B. $1,719.02
C. $1,722.32
D. $1,764.77
1 answer