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5. Jay was due to make loan payments of $500 four months ago, $80 in three months. He has agreed instead to make a single payment one month from today. If money is worth 10.5% and the agreed focal date is one month from today what is the size of the replacement payment? töday, and $400 Reference Example 7.5C

5. Jay was due to make loan payments of $500 four months ago, $80 in three months. He has agreed instead to make a single payment one month from today. If money is worth 10.5% and the agreed focal date is one month from today what is the size of the replacement payment? töday, and $400 Reference Example 7.5C

Essentials Of Investments
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
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5. Jay was due to make loan payments of $500 four months ago, $800 today, and $400 in three months. He has agreed instead to make a single payment one month from today. If money is worth 10.5% and the agreed focal date is one month from today what is the size of the replacement payment? Reference Example 7.5C 6. Jane was due to make loan payments of $1200 six months ago, $1500 one month ago, and $700 in two months. Instead, she is to make a single payment today. If money is worth 9.8% and the agreed focal date is today, what is the size of the replacement payment?
Transcribed Image Text:5. Jay was due to make loan payments of $500 four months ago, $800 today, and $400 in three months. He has agreed instead to make a single payment one month from today. If money is worth 10.5% and the agreed focal date is one month from today what is the size of the replacement payment? Reference Example 7.5C 6. Jane was due to make loan payments of $1200 six months ago, $1500 one month ago, and $700 in two months. Instead, she is to make a single payment today. If money is worth 9.8% and the agreed focal date is today, what is the size of the replacement payment?
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