James borrowed $5,000 from his friend 2 years ago; and, an additional $3,000 1 year ago. He wants to repay his friend the money that he borrowed plus interest at 8% compounded quarterly.
a) How much will James have to pay in 2 years time to fully repay his debt if he pays $1,000 to-day & $4,000 1 year from now?
b) Calculate James' payments if he wants to fully repay his debt with two equal payments - the first 9 months from now & the second 18 months from now.
Possible formula: Fv=PMT[ (1+i)^n -1 / i ]
Someone please help me with this question...
Thanks in advance