A debt of $5250.56 is repaid by payments of $1085.37 in 4 months, $1063.35 in 13 months, and a final payment in 32 months. If interest was 5% compounded annually, what was the amount of the final payment? The final payment is S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A debt of $5250.56 is repaid by payments of $1085.37 in 4 months, $1063.35 in 13 months, and a final payment in 32 months. If interest was 5% compounded annually, what was the amount of the final payment? The final payment is S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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
Related questions
Question
Transcribed Image Text:A debt of $5250.56 is repaid by payments of $1085.37 in 4 months, $1063.35
in 13 months, and a final payment in 32 months. If interest was 5%
compounded annually, what was the amount of the final payment?
The final payment is $
(Round the final answer to the nearest cent as needed. Round all
intermediate values to six decimal places as needed.)
Transcribed Image Text:An investment of $3435.82 earns interest at 2.8% per annum compounded
semi-annually for 3 years. At that time the interest rate is changed to 7.1%
compounded quarterly. How much will the accumulated value be 4.5 years
after the change?
The accumulated value is $
(Round the final answer to the nearest cent as needed. Round all
intermediate values to six decimal places as needed.)
Expert Solution
Step 1: Given Information:
Here,
| Question 1: | |
| Particulars | Values |
| Present value of debt | $ 5,250.56 |
| Amount repaid after 4 months | $ 1,085.37 |
| Amount repaid after 13 months | $ 1,063.35 |
| Number of months at the time of repayment | 4.00 |
| Number of months at the time of repayment | 13.00 |
| Number of months required for final payment | 32.00 |
| Interest rate | 5.00% |
| Amount of the final payment | ?? |
| Question 2: | |
| Particulars | Values |
| Present value of investment | $ 3,435.82 |
| Interest rate | 2.80% |
| Number of years | 3.00 |
| Interest rate after 3 years | 7.10% |
| Total number of years | 4.50 |
| Number of years between 4.5 and 3 | 1.50 |
| Accumulated value after 4.5 years | ?? |
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