Assume that somebody has to pay £2000 in three years’ time and £3000 in seven years’ time. They want to pay off both debts by a single payment in six years’ time. Assuming an interest rate of 8% p.a., how much do they have to pay?
Assume that somebody has to pay £2000 in three years’ time and £3000 in seven years’ time. They want to pay off both debts by a single payment in six years’ time. Assuming an interest rate of 8% p.a., how much do they have to pay?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.12E
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Assume that somebody has to pay £2000 in three years’ time and £3000 in seven years’ time. They want to pay off both debts by a single payment in six years’ time. Assuming an interest rate of 8% p.a., how much do they have to pay?
![3. * Assuming 365 days in a financial year answer the following questions:
(a) Find the discounted value of $500 due in 82 days at 9% (compound) interest.
(b) Find the discounted value of $500 due in 82 days at a (compound) discount rate of 9%.
(c) Find the discounted value of $500 due in 82 days at 9% simple interest.
(d) Find the discounted value of $500 due in 82 days at 9% commercial discount.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed029406-a1c1-473f-a3a0-6fd0fbd8e89d%2F0766fe81-7ec2-4945-b01d-a21571b6f6cb%2Fzwf1axa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. * Assuming 365 days in a financial year answer the following questions:
(a) Find the discounted value of $500 due in 82 days at 9% (compound) interest.
(b) Find the discounted value of $500 due in 82 days at a (compound) discount rate of 9%.
(c) Find the discounted value of $500 due in 82 days at 9% simple interest.
(d) Find the discounted value of $500 due in 82 days at 9% commercial discount.
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