Question: I can't figure out this question so any help is greatly appreciated! Roland owes three debts: $500 due in one year; $1500 due in two
I can't figure out this question so any help is greatly appreciated!
Roland owes three debts:
$500 due in one year;
$1500 due in two years, plus simple interest at 6%;
$2000 due in three years, plus simple interest at 5%.
He wants to discharge these debts by paying $1000 now and two equal
but unknown payments in one and two years, respectively. Find the size of the equal payments if money is, at present, worth 10% simple interest.
use a focal date of 2 years.
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