Nine months ago, Muriel agreed to pay Aisha $1,200 and $800 on dates 6 and 12 months, respectively, from the date of the agreement. With each payment Muriel agreed to pay interest at the rate of 8.5% from the date of the agreement. Muriel failed to make the first payment and now wishes to settle her obligations with a single payment four months from now. What payment should Aisha be willing to accept if money can earn 6.75%?

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The Answer of Nine months ago, Muriel agreed to pay Aisha $1,200 and $800 on dates 6 and 12 months, respectively, from the date of the agreement. With each payment Muriel agreed to pay interest at the rate of 8.5% from the date of the agreement. Muriel failed to make the first payment and now wishes to settle her obligations with a single payment four months from now. What payment should Aisha be willing to accept if money can earn 6.75%?

Nine Months Ago, Muriel Agreed to Pay Aisha $1,200 and $800