SOLUTION: A loan is to be repaid in 9 months by a payment of $1,300. If interest is allowed at 13.15%, what is the present value of the loan?

SOLUTION: A loan is to be repaid in 9 months by a payment of $1,300. If interest is allowed at 13.15%, what is the present value of the loan?

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Question 1166214: A loan is to be repaid in 9 months by a payment of $1,300. If interest is allowed at 13.15%, what is the present value of the loan?
Answer by Edwin McCravy(20081) (Show Source): You can put this solution on YOUR website!

I = Prt

  P + I = $1300
P + Prt = $1300
P(1+rt) = $1300







P = $1183.30

Edwin

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