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) About Me  (Show Source):
You can put this solution on YOUR website!
I = Prt

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

P%281%2B%280.1315%29%289%2F12%29%5E%22%22%29=+1300

P%281.098625%29=+1380

P=1300%2F1.098625

P = $1183.30

Edwin