A payment of $2,800 is due in 2 years and $3,500 is due in 4 years. These two original payments are to be rescheduled with a payment of $2,000 in 1 year and the balance in 3 years. Calculate the payment required in 3 years for the rescheduled option. Assume that money earns 4.5% compounded semi-annually.
A payment of $2,800 is due in 2 years and $3,500 is due in 4 years. These two original payments are to be rescheduled with a payment of $2,000 in 1 year and the balance in 3 years. Calculate the payment required in 3 years for the rescheduled option. Assume that money earns 4.5% 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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Transcribed Image Text:A payment of $2,800 is due in 2 years
and $3,500 is due in 4 years. These
two original payments are to be
rescheduled with a payment of $2,000
in 1 year and the balance in 3 years.
Calculate the payment required in 3
years for the rescheduled option.
Assume that money earns 4.5%
compounded semi-annually.
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