suppose you owe two different debts to a loan shark. the first is a debt which will total 1000 in five years time and collects interest at an annual effective rate of 4%. The other debt will be $2000 in seven years and collects interest at an annual rate of 6% compunded semi- annually. you decide to pay off with a single payment one year from now
1. draw a time line and identify the debts and payments. clearly identify a time at which you will compare values of debts and payments
2. determine the size of the payment you need to make in 1 year

Question

suppose you owe two different debts to a loan shark. the first is a debt which will total 1000 in five years time and collects interest at an annual effective rate of 4%. The other debt will be $2000 in seven years and collects interest at an annual rate of 6% compunded semi- annually. you decide to pay off with a single payment one year from now
1. draw a time line and identify the debts and payments. clearly identify a time at which you will compare values of debts and payments
2. determine the size of the payment you need to make in 1 year

anonymous · Answer

1. don't get your self into any pellet with a loan shark...
2. You're pretty much fluttered if you do dealing with a loan shark...