Kaplan exam kit

Please, I will suggest that responses should not be close to reply so soon because once your reply is not well understood one can continue from same page instead retyping the whole question again and this can add to more frustration when the brain is trying to figure out the how to find solutions.

Back to my question ,

Latterly was owe 12650, because we were told he paid instantly half of the cost and remaining was to be paid in 2 yrs time with Finance cost of 10% pa . We are requested to show the total amounts in the SOPL for 1yr that is 2005.

Total receivables is $25,300.

If I (Latterly) pay $12,650 immediately, in 2004 and I am to pay the remaining bal in 2006.

PV of the amount discounted by 10% for 1 yr = $11,500 and effective differing Finance cost charge for that yr = $ 1,150.
What is suppose to be shown in total on SOPL for 2005 remaining 2006 left?

This is where I needed your explicit assistance because the solution from kaplan is not cleared enough to me.

Kaplan said add the $ 12,650 + 11,500 to give total amount that will be shown in the SOPL?

Why adding $12,650 which is supposed to be the remaining bal due in 2 yrs time 2006?

The discounted payment is $11,500 for 2005 while for 2006 might be same if C/F .If am I wrong, how much did I pay for 1yr ? What is my remaining bal for next yr to closed my debt?

Sorry , I was never satisfy with your explanation and that is why I needed to return to this question.

Thanks in advance.