A payment of $11,335 is due in 3 year, $18,000 is due in 4 years, and $8,850 is due in 6 years. What single equivalent payment made today would replace the three original payments? Assume that money earns 6.75% compounded monthly.
A payment of $11,335 is due in 3 year, $18,000 is due in 4 years, and $8,850 is due in 6 years. What single equivalent payment made today would replace the three original payments? Assume that money earns 6.75% compounded monthly.
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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![A payment of $11,335 is due in 3 years, $18,000 is due in 4 years, and $8,850 is due in 6 years. What single equivalent payment made today would replace the three original payments? Assume that money earns 6.75% compounded monthly.
[Input box for the amount: $0.00]
Round to the nearest cent.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c8d4003-6dbe-4a96-8cef-3ca09402ad71%2F1f6c4836-52e5-41bb-af78-d2516b50ebff%2Flhda0c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A payment of $11,335 is due in 3 years, $18,000 is due in 4 years, and $8,850 is due in 6 years. What single equivalent payment made today would replace the three original payments? Assume that money earns 6.75% compounded monthly.
[Input box for the amount: $0.00]
Round to the nearest cent.
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