A Student Borrows $2,000 Today and They Agree to Pay

A student borrows $2,000 today and they agree to pay off the loan with one payment of $2,590.06 to be made at the end of 3 years time.It is then agreed that,instead of paying off the loan with one payment,the student can pay off the loan with a payment of $1000 one year from now and $X two years from now.Given that j₂ = 6%,determine $X.

A) $1190.12
B) $1286.20
C) $1380.48
D) $1529.16

Correct Answer:

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