Simple Interest question! Need answer

Question

Andrew owes Nicola $500 in 3 months and $200 in 6 months both due with interest at 6%. Nicola accepts $300 now, how much will Andrew be required to pay at the end of 1 year, provided they agree to use an interest rate of 8% and a focal date at the end of 1 year ?

Answer 1

Andrew will be required to pay 432 to Nicola at the end of Year 1. 

 

He owed total 700 (500+200)

He paid now  (300)

Remaining     400

 

Interest for 1 year 400*8% = 32

 

Total payment Due 432  (400+32)