A loan is to be paid by installments of $800 1-month from now, $600 3-months from now, and $500 4- months from now. Instead of this payment scheme, the borrower wishes to make one single payment 2 months from now. What is the amount of the alternative single payment using a focal date of 3 months r = 6%? OA. $1890.55 OB. $1905.51 OC. $1896.03 O D. $1901.00
A loan is to be paid by installments of $800 1-month from now, $600 3-months from now, and $500 4- months from now. Instead of this payment scheme, the borrower wishes to make one single payment 2 months from now. What is the amount of the alternative single payment using a focal date of 3 months r = 6%? OA. $1890.55 OB. $1905.51 OC. $1896.03 O D. $1901.00
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
Related questions
Question
![A loan is to be paid by installments of $800 1-month from now, $600 3-months from now, and $500 4-
months from now. Instead of this payment scheme, the borrower wishes to make one single payment 2
months from now. What is the amount of the alternative single payment using a focal date of 3 months and
r = 6%?
A. $1890.55
B. $1905.51
C. $1896.03
D. $1901.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82fb09ef-8002-43d2-aa56-011b9b20dfcf%2F350f8ba7-6850-4938-ab98-95f057475d26%2Feofnmt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A loan is to be paid by installments of $800 1-month from now, $600 3-months from now, and $500 4-
months from now. Instead of this payment scheme, the borrower wishes to make one single payment 2
months from now. What is the amount of the alternative single payment using a focal date of 3 months and
r = 6%?
A. $1890.55
B. $1905.51
C. $1896.03
D. $1901.00
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Pfin (with Mindtap, 1 Term Printed Access Card) (…](https://www.bartleby.com/isbn_cover_images/9780357033609/9780357033609_smallCoverImage.jpg)
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
![Pfin (with Mindtap, 1 Term Printed Access Card) (…](https://www.bartleby.com/isbn_cover_images/9780357033609/9780357033609_smallCoverImage.jpg)
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning