Question 992679
it depends on whether  you are using simple interest or compound interest.
if you assume compound interest per month, then the answer is $3559.62 which rounds to $3560 whole numbers.


if you assume simple interest you'll get a different number.


since your number shown is 3560, i'm assuming you mean annual interest rate compounded monthly.


the formulas used would be:


pv = fv / (1+r)^n


fv = pv * (1+r)^n


n is the number of months.
r% is equal to 8.25% / 12 = .6875%
r is equal to .6875% / 100 = .006875
1+r is equal to 1.006875


since 1000 was due two months ago, you use the fv formula with n = 2.
since 1200 is due in two months, you use the pv formula with n = 2
since 1400 is due in 4 months, you use the pv formula iwth n = 4


add them up and you get the equivalent amount owed in the present time period.


you should get:


1000 * 1.006875^2 = 1013.797266
1200 / 1.006875^2 = 1183.66861
1400 / 1.006875^4 = 1362.152728


add them up and you get a total of 3559.618604 which rounds to 3560.