00:01
So we have debt payments due of 1170 two months ago.
00:07
We have 1243 due today.
00:14
And then we're going to replace those payments with, let's see here, 1505 one month from now, and another payment two, three, four months from now, of which we don't know the value.
00:32
So we have to determine what x is.
00:36
And we are assuming that money is worth 8 .4 percent per year, or that's the interest it would earn.
00:49
So this is annual, and here our times are in months.
00:57
So when we move these to a common focal time of time is four, we're gonna have to use the fact that this is an annual rate and these are months.
01:14
So that 1170 moved to four months from now, we have to multiply by 1 .084, and that is six months.
01:27
But there are 12 months in a year, so that is half a year, or six twelfths.
01:34
And then the 1243 payment that's due today, we're going to move four months into the future, so that we multiply by 1 .084 to the four twelfths, and that then will be replaced by, so this will be equal to the other two payments, 1505, which we have to multiply by 1 .084...