Your portfolio consists of two loans.
A \$22000 loan due at the end of 8 years with interest at j52 = 3%
and A \$42000 loan due at the of 11 years with interest at j12 = 6%
Calculate the present value of this portfolio at the rate of j12=3.5%
So for this question, I tried getting the accumulated value of both separately and got \$27,965.55 and \$81,127.75 respectively. From there I then added the two together and tried to get the present value using both 11 years and 8 years and neither was correct.
Where am I making a mistake?
jm is the is the nominal (yearly) interest rate for compounding m times a year. So j12 would be compounding monthly, and j52 would be weekly.
$$PV=22,000\left( \frac{0.03}{52}+1 \right)^{52\times8} \cdot \left( \frac{0.035}{12}+1 \right)^{-12\times8}+$$
$$+42,000\left( \frac{0.06}{12}+1 \right)^{12\times11} \cdot \left( \frac{0.035}{12}+1 \right)^{-12\times11}=76,378.89$$