In 2016, Danny signed an agreement to repay John $4000 in 1.5 years, $2500 in 3...
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In 2016, Danny signed an agreement to repay John $4000 in 1.5 years, $2500 in 3 years, and $1500 in 5 years. Unfortunately, he couldn't make the 1 and second repayments and fortunately, John gave him extensions for both but charged interest. In 2020, Danny approached John and told him that he could make a single payment to settle all 3 debts. Find the size of the single payment if the interest rate is 4.86% P.a. compounded monthly. - 10 marks Step 1. Draw timeline here: 2 marks Step 2. Fill in blanks - the values:4 marks Debt 1: m3D n= PV = FV = • Debt 2: ;m 3D s%3D PV = FV = Debt 3; :m%3D PV = FV = Step 3. Formula and Calculation: 4 maks Time left for this In 2016, Danny signed an agreement to repay John $4000 in 1.5 years, $2500 in 3 years, and $1500 in 5 years. Unfortunately, he couldn't make the 1 and second repayments and fortunately, John gave him extensions for both but charged interest. In 2020, Danny approached John and told him that he could make a single payment to settle all 3 debts. Find the size of the single payment if the interest rate is 4.86% P.a. compounded monthly. - 10 marks Step 1. Draw timeline here: 2 marks Step 2. Fill in blanks - the values:4 marks Debt 1: m3D n= PV = FV = • Debt 2: ;m 3D s%3D PV = FV = Debt 3; :m%3D PV = FV = Step 3. Formula and Calculation: 4 maks Time left for this
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