Post by: HCHenry on Jun 6, 2019
Question 1
A promissory note for $3600.00 dated May 15, 2012, requires an interest payment of $370.00 at maturity. If interest is at 9.6% compounded monthly, determine the due date of the note.Question 2
A financial obligation requires the payment of $1000.00 in nine months, and $500.00 in twelve months. When can the obligation be discharged by a single payment of $1700.00 if interest is 12% compounded quarterly?Post by: uniquea123 on Jun 6, 2019
Answer 1
PV = 3600, FV = 3600 + 370 = 3970, i = 0.096 ÷ 12 = 0.008n =
= 
= 
= 12.27788231 = 1 year + 0.27788231 × 365 days0.27788231 × 365 = 101.438 ≈101 days
May 15 + 101 days = 135 + 101 = 236 = August 24, 2012.
The due date is August 24, 2012.
Answer 2
Let the focal date be now; i = 0.12 ÷ 4 = 0.03; m = 4Debts = 1000.00(1.03)-3 + 500.00(1.03)-4 = 1359.38
FV = 1700, PV = 1359.38
n =
= 
= 
= 7.56456693 quarters = 1.891141733 years
The discharge date is 1 year 325 days from now.
Post by: HCHenry on Jun 6, 2019
Post by: uniquea123 on Jun 6, 2019