A contract requires payments of $4954.00 today, $4004.00 in 3 years, and S 2583.00 in 5 years. When can the contract 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).
A contract requires payments of $4954.00 today, $4004.00 in 3 years, and S 2583.00 in 5 years. When can the contract 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).
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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![A contract requires payments of $4954.00 today, $4004.00 in 3 years, and S
2583.00 in 5 years. When can the contract 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).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84afc0c5-b780-47ea-b810-ed04fbf6ac38%2F19073491-6caf-4176-af4b-5ef34707a850%2Fuz74kuy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A contract requires payments of $4954.00 today, $4004.00 in 3 years, and S
2583.00 in 5 years. When can the contract 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).
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