Equivalent Payments

[SarGus]

Hello,
I believe I know what I am doing, but just to verify for an assignment. Here is the question.

Liz was supposed to pay Lionel $6,500 6 months ago and $740 in 5 months. If she wants to repay this amount with two equivalent payments of $2,400 today and the balance amount in 2 months, calculate the balance amount. Assume interest is 2.20% p.a. and the agreed focal date is 2 months from now. I think I have my stream line correct, just hoping to confirm the formula.

Thanks!

 

[SarGus]

I figured it out, thank you. This can be deleted, I can't seem to figure that out.

 

[tkhunny]

Does it say Simple Interest? What was your result?