Alexandra owes $12,000 to a friend who is charging her a simple interest rate of 3.90% p.m. She is required to settle the amount owed with two equal payments, one today and the other in five months. What is the size of the payments using today as the focal date?

Answer rating: 100% (QA)

To solve this problem we need to use the formula for present value of a single amount PV PMT 1 rn Wh... View the full answer