Loan payments of $6000 due 100 days ago and $5000 due 45 days ago are to be replaced by a payment of $5000 today and the balance 50 days from today. If the interest rate is 5% and the agreed focal date is 50 days from today, calculate the size of the final payment (Please draw a time line before doing the question)

Answer rating: 100% (QA)

Timeline Loan 1 Due Loan 2 Due Today Focal Date 50 days 100 days 45 days 0 50 days ... View the full answer