document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=992679>Question 992679</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Three debts, the first for $1000 due two months ago, the second for $1200 due in two months, and the third for $1400 due in four months, are to be paid by a single payment today. How much is the single payment if money is worth 8.25% p.a. and the focal date is today?<BR>\n" );
document.write( "Answer: $3560.00 </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #612237 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=612237\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> it depends on whether  you are using simple interest or compound interest.<BR>\n" );
document.write( "if you assume compound interest per month, then the answer is $3559.62 which rounds to $3560 whole numbers.\r<BR>\n" );
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document.write( "if you assume simple interest you'll get a different number.\r<BR>\n" );
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document.write( "since your number shown is 3560, i'm assuming you mean annual interest rate compounded monthly.\r<BR>\n" );
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document.write( "the formulas used would be:\r<BR>\n" );
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document.write( "pv = fv / (1+r)^n\r<BR>\n" );
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document.write( "fv = pv * (1+r)^n\r<BR>\n" );
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document.write( "n is the number of months.<BR>\n" );
document.write( "r% is equal to 8.25% / 12 = .6875%<BR>\n" );
document.write( "r is equal to .6875% / 100 = .006875<BR>\n" );
document.write( "1+r is equal to 1.006875\r<BR>\n" );
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document.write( "since 1000 was due two months ago, you use the fv formula with n = 2.<BR>\n" );
document.write( "since 1200 is due in two months, you use the pv formula with n = 2<BR>\n" );
document.write( "since 1400 is due in 4 months, you use the pv formula iwth n = 4\r<BR>\n" );
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document.write( "add them up and you get the equivalent amount owed in the present time period.\r<BR>\n" );
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document.write( "you should get:\r<BR>\n" );
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document.write( "1000 * 1.006875^2 = 1013.797266<BR>\n" );
document.write( "1200 / 1.006875^2 = 1183.66861<BR>\n" );
document.write( "1400 / 1.006875^4 = 1362.152728\r<BR>\n" );
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document.write( "add them up and you get a total of 3559.618604 which rounds to 3560.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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