A contract requires payments of $4610.00 today, $5440.00 in 2 years, and $4438.00 in 5 years. When can thecontract be fulfilled by a single payment equal to the sum of the required payments if money is worth 7% p.a.compounded semi-annually? State your answer in years and months (from 0 to 11 months).The contract can be fulfilled inyear(s) and40001month(s).

Present value is the equivalent value today of the future payments based on the time value of money…

Answered: A contract requires payments of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 41P

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A contract requires payments of $4610.00 today, $5440.00 in 2 years, and $4438.00 in 5 years. contract be fulfilled by a single payment equal to the sum of the required payments if money is v compounded semi-annually? State your answer in years and months (from 0 to 11 months).