Kayla's lawyer gave her the following two options to settle her invoice: (a) $1,200.00 in 1...

 

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Kayla's lawyer gave her the following two options to settle her invoice: (a) $1,200.00 in 1 month and the balance of $1,900.00 in 4 months. (b) Two equal payments, one in 40 days and the other in 11 months. If money earned 4.30% p.a., what was the value of the equal payments in Option (b) such that it is equivalent to the payments in Option (a)? Use now as the focal date for this question. Round to the nearest cent Kayla's lawyer gave her the following two options to settle her invoice: (a) $1,200.00 in 1 month and the balance of $1,900.00 in 4 months. (b) Two equal payments, one in 40 days and the other in 11 months. If money earned 4.30% p.a., what was the value of the equal payments in Option (b) such that it is equivalent to the payments in Option (a)? Use now as the focal date for this question. Round to the nearest cent

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Answer 156836 Solution Given that interest rate r 430 pre... View the full answer