A loan of $4282 borrowed today is to be repaid in three equal installments due in one year, three years, and five-and-a-half years, respectively. What is the size of the equal installments if money is worth 6.8% compounded semi-annually?

A loan of $4282 borrowed today is to be repaid in three equal installments due in one year, three years, and five-and-a-half years, respectively. What is the size of the equal installments if money is worth 6.8% compounded semi-annually?

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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Question

A loan of $4282 borrowed today is to be repaid in three equal installments due in one year, three years, and five-and-a-half years, respectively. What is the
size of the equal installments if money is worth 6.8% compounded semi-annually?

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