[SOLVED] Compound Interest Calculation
Not for heck can i figure this answer out! I have been working on it for quite a few hours!!!! I approached it from all angles and keep getting something different from what the answer should be... Can I PLEASE get some help???
The question is as follows:
A loan of $1000 with interest J4 = 10% will be repaid by a payment of $200 at the end of 3 months and three equal payments at the ends of 6, 9, and 12 months. What will the value of these payments be??
The answer as quoted here is $288.86. How is this??
I tried bringing each payment X to present value, i tried bringing the Principal to the future value at the end of the year with the compounded interest, and consequently bringing forward each payment including the $200 forward and equating, i tried using the 3 months as the focal point, but I still am not getting that $288.86. Please help???(Headbang)