document.write( "Question 1166215: Payments of $5,000 due in 3 months and $6,000 due in 9 months are to be paid off with interest allowed at 13%. How much would be required to pay off the loan today?( Use today as the focal date).
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Algebra.Com's Answer #852028 by ikleyn(52778) $\"\"$ $\"About$

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\n" ); document.write( "Payments of $5,000 due in 3 months and $6,000 due in 9 months are to be paid off with interest allowed at 13%.
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document.write( "Since the problem tells nothing about compounding, I will assume that 13% is simple annual interest rate.\r\n" );
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document.write( "To answer the question, we should add the present values of the two accounts.\r\n" );
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document.write( "Present value of the first  account is   = 4842.62 dollars (rounded).\r\n" );
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document.write( "Present value of the second account is   = 5466.97 dollars (rounded).\r\n" );
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document.write( "The total to pay today is the sum  4842.62 + 5466.97 = 10309.59 dollars.    ANSWER\r\n" );
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