Loan Obligation of $6K due on 31Mar07; find value on 27Jan99

[seejday1228]

A loan obligation of $6,000 comes due on March 31st 2007. What was the value of this obligation on Jan 27th 1999 if interest charged is 9% converted quarterly?

I keep confusing different formulas for this problem. which one actually is it?

 

[seejday1228]

Re: Loan Obligation

I got 2,943.91 for the first 8 years but how do i calculate the other 63 days between January 27 and March 31?

 

[Denis]

Well, I'd use the 63 days as 63 / 90 = .7 of a quarter, so n = 32.7

6000 / 1.0225^32.7 = 2898.42

Your 2943.91 is correct.