Avril owes Value Furniture $1600, which is scheduled to be paid on August 15. Avril has surplus

Question:

Avril owes Value Furniture $1600, which is scheduled to be paid on August 15. Avril has surplus funds on June 15 and will settle the debt early if Value Furniture will make an adjustment reflecting the current short-term interest rate of 7.25%. What amount should be acceptable to both parties?