3. Two debt payments, the first in the amount of $1600.00 due today, and the second in the amount of $7200.00 due in 15 months with interest at 9.6% p.a. compounded quarterly, are to be settled by a payment of $3400.00 nine months from now and a final payment in 21 months. Determine the size of the final payment if the money is worth 12.12% p.a. compounded monthly. Select one: a.$5,400.00 b.$6,750.48 c.$5,787.66 d.$6,092.09

3. Two debt payments, the first in the amount of $1600.00 due today, and the second in the amount of $7200.00 due in 15 months with interest at 9.6% p.a. compounded quarterly, are to be settled by a payment of $3400.00 nine months from now and a final payment in 21 months. Determine the size of the final payment if the money is worth 12.12% p.a. compounded monthly. Select one: a.$5,400.00 b.$6,750.48 c.$5,787.66 d.$6,092.09

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

3. Two debt payments, the first in the amount
of $1600.00 due today, and the second in the
amount of $7200.00 due in 15 months with
interest at 9.6% p.a. compounded quarterly,
are to be settled by a payment of $3400.00
nine months from now and a final payment in
21 months. Determine the size of the final
payment if the money is worth 12.12% p.a.
compounded monthly.
Select one:
a.$5,400.00
b.$6,750.48
c.$5,787.66
d.$6,092.09

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