bitesnbites
New member
- Joined
- Jan 11, 2013
- Messages
- 6
Sorta having trouble with current focal dates for some reason. I think i'm over looking a main step.
You are scheduled to repay a debt in two payments, $300 due 1 month ago, and $800 due in 4 months. Instead you negotiate to pay $600 today, and the remaining balance in 7 months. How much will the balance be if the focal point is today and the interest is 5% PA.
How do you calculate based on TODAYS focal date? I know if it were $800 due in 4 months with a focal point in 7 months it would be based on (3/12).
In this example using today as a focal date, what would 1 month ago be based on? (?/12 months) and $800 (?/12 months)
For some reason I am just not comprehending focal dates based on Today, and Past value payments.
Can someone assist with the above example i've provided so I can see the workings of where it is i'm misunderstanding
Thanks
You are scheduled to repay a debt in two payments, $300 due 1 month ago, and $800 due in 4 months. Instead you negotiate to pay $600 today, and the remaining balance in 7 months. How much will the balance be if the focal point is today and the interest is 5% PA.
How do you calculate based on TODAYS focal date? I know if it were $800 due in 4 months with a focal point in 7 months it would be based on (3/12).
In this example using today as a focal date, what would 1 month ago be based on? (?/12 months) and $800 (?/12 months)
For some reason I am just not comprehending focal dates based on Today, and Past value payments.
Can someone assist with the above example i've provided so I can see the workings of where it is i'm misunderstanding
Thanks