A $5000 payment due 1 1/2 years ago has not been paid. If money can earn 3.25% compounded annually, what amount paid 2 1/2 years from now would be the economicequivalent of the missed payment?

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
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A $5000 payment due 1 1/2 years ago has not been paid. If money can earn 3.25%
compounded annually, what amount paid 2 1/2 years from now would be the
economicequivalent of the missed payment?
Transcribed Image Text:A $5000 payment due 1 1/2 years ago has not been paid. If money can earn 3.25% compounded annually, what amount paid 2 1/2 years from now would be the economicequivalent of the missed payment?
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