Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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![A payment of $11,620 is due in 2 year, $17,500 is due in 5 years, and $8,350 is due in 7
years. What single equivalent payment made today would replace the three original
payments? Assume that money earns 6.50% compounded monthly.
Round to the nearest cent](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F742cb3f6-ae05-454a-ae2d-a0bab3f829e4%2F23e19d7b-1c71-4082-8549-a89dcd4f9df1%2Fmk1jdrs_processed.png&w=3840&q=75)
Transcribed Image Text:A payment of $11,620 is due in 2 year, $17,500 is due in 5 years, and $8,350 is due in 7
years. What single equivalent payment made today would replace the three original
payments? Assume that money earns 6.50% compounded monthly.
Round to the nearest cent
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