Interest Applications Help

[cjoyne]

I've been working through previous questions and this particular Question I keep getting different answers, some guidance on steps for Clarification please


-Scheduled payments of $400 due 3 months ago and $1,600 due 11 months from now are to be replaced by a payment of $750 two months ago and a final payment 6 months from now. What is the final payment if interest is 5.25% per annum and today is the focal date

 

[tkhunny]

Let's see your map. Money goes what direction on what date? Draw it out.

I am a little curious how you can replace payments already made ($400) with other payments already made ($700). It's not a problem for the arithmetic, but it makes little practical sense.