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An obligation of $25,000 is due today, but it was decided to pay the debt in two equal payments one 2 year and the other 5 years from now. If the focal date is today, and the rate of interest is 4.15% compounded quarterly, how much is each payment?

An obligation of $25,000 is due today, but it was decided to pay the debt in two equal payments one 2 year and the other 5 years from now. If the focal date is today, and the rate of interest is 4.15% compounded quarterly, how much is each payment?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An obligation of $25,000 is due today, but it was decided to pay the debt in two equal payments one 2 year and the other 5 years from now. If the focal date is today, and the rate of interest is 4.15% compounded quarterly, how much is each payment?
Transcribed Image Text:An obligation of $25,000 is due today, but it was decided to pay the debt in two equal payments one 2 year and the other 5 years from now. If the focal date is today, and the rate of interest is 4.15% compounded quarterly, how much is each payment?
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