a debt of 28600 is due after 3 years and 7 months. if the debtor wishes to pay his creditor now who charges 8 1/2% compounded semi-anually in discounting the debt, how much would he have to pay?
$$\\FV=PV(1+r)^n\\ $rearranging we get$\\ PV=\frac{FV}{(1+r)^n}\\\\ FV=2860\\\\ r=\frac{8.5\%}{2 }= 0.0425\\\\ n=3\frac{7}{12}*2 =7 \frac{1}{6}$$
Now just plug the number in :)
