Homework Answers
Let equal payment = x
Interest rate = 3.90% p.m
simple interest for 5 months = ($12,000 - x) * 3.90% * 5
= $2,340 - 0.195x
Total payment = Amount owed + interest
x + x = $12,000 + $2,340 - 0.195x
2.195x = $14,340
x = $6,533.02961
Therefore, amount of equal payment today and 5 months later is $6,533.03
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