
A person obtains a loan to be settled with payments of $3...

by
Melanie


A person obtains a loan to be settled with payments of $300 four months from now and $500 one year from now. If he is charged an interest rate of 10%, what is the size of the loan if the focal date is:
a) now?
b) one year hence?
c) four months hence?
I was able to get the correct answers for a) and b), but struggling with c) I know the answer is $743.95, but I keep coming up with different numbers. Below is my latest attempt, but it is incorrect:
x(1+.10*1/3)+$300(1+0.10*2/3)+500
x= $793.57




