Answer to Question #79056 in Financial Math for Nur Haidar Hanafi

Question

850 and 900 were paid on 1st March 2018 and 25th June 2018. Find the accumulated value at the end of year 2018, given that the rate of simple interest is 7% per annum, using ordinary simple interest.

Answer 1

If 850 and 900 were paid on 1st March 2018 and 25th June 2018, given that the rate of simple interest is 7% per annum, using ordinary simple interest, then the accumulated value at the end of year 2018 is
FV = 850*(1 + 0.07*270/365) + 900*(1 + 0.07*185/365) = 1825.95.