A contract requires that Bob makes payments of $1319 and $3728 to Jim 24 and 45 months respectively. Bob would like to change the payment structure to a payment of $1901 today, and a second payment made 45 months from today. If the two sets of payments are economically equivalent, and the interest rate is 6% compounded quarterly, then what is the amount of the second payment? Give your answer rounded to the nearest cent.
A contract requires that Bob makes payments of $1319 and $3728 to Jim 24 and 45 months respectively. Bob would like to change the payment structure to a payment of $1901 today, and a second payment made 45 months from today. If the two sets of payments are economically equivalent, and the interest rate is 6% compounded quarterly, then what is the amount of the second payment? Give your answer rounded to the nearest cent.
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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A contract requires that Bob makes payments of $1319 and $3728 to Jim 24 and 45 months respectively. Bob would like to change the payment structure to a payment of $1901 today, and a second payment made 45 months from today. If the two sets of payments are economically equivalent, and the interest rate is 6% compounded quarterly, then what is the amount of the second payment? Give your answer rounded to the nearest cent.
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