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A Loan Is to Be Paid by Installments of $800

Question 9

Multiple Choice

A loan is to be paid by installments of $800 1-month from now,$600 3-months from now,and $500 4-months from now.Instead of this payment scheme,the borrower wishes to make one single payment 2 months from now.What is the amount of the alternative single payment using a focal date of 3 months and r = 6%?


A) $1905.51
B) $1901.00
C) $1896.03
D) $1890.55

Correct Answer:

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