Chelsea was supposed to pay Jacob $4,800, 6 months ago, and $1,500, 5 months from now. If she wants to reschedule these payments with two payments, one payment of $3,100 today and the balance 3 months from now, calculate the balance amount. Assume that the simple interest charged is 5.25% p.a. and the agreed focal date is 3 months from now.

Chelsea was supposed to pay Jacob $4,800, 6 months ago, and $1,500, 5 months from now. If she wants to reschedule these payments with two payments, one payment of $3,100 today and the balance 3 months from now, calculate the balance amount. Assume that the simple interest charged is 5.25% p.a. and the agreed focal date is 3 months from now.

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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Similar questions

Franklin owes the following amounts to the same person: $16,000 due today, $11,500 due in 1¼ years, $17,000 due in 2¾ years, and $15,000 due in 4¼ years. He wants to make a single payment of $56,500 instead. Using an interest rate of 8% compounded quarterly, when should this payment be made?
You MUST use the TI BA II calculator features (N, I/Y, PV, PMT, FV, AMORT) Matt agreed to make two payments - a payment of $2,000 due in nine months and a payment of $1,500 in a year.If Matt makes a payment of $1,800 now, when should he make a second payment of $1,700 if money is worth 8% compounded quarterly?
Jane was due to make loan payments of S1805 seven months ago, $4310 four month ago, and S534 in five months Instead, she is to make a single payment today If money is worth 87% and the agreed focal date is today, what Is the Size of the replacement payment?
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $590 per month. You will charge .99 percent per month interest on the overdue balance. If the current balance is $14,810, how long will it take for the account to be paid off? Number of months:
I really need help on this problem. Have been working at it for an hour and can't seem to find the answer. Stacy will receive equal payments of $798 at the beginning of each month with her first payment received in 4 years from today and her last payment received 27 years from today. Find the present value of these payments at the beginning of year 6 if the interest rate is 5.52%.
Susan Carver will purchase a home for $280,000. She will use a down payment of 18% and finance the remaining portion at 5.7%, compounded monthly for 30 years. Complete parts (a) through (c) below. (a) What will be the monthly payment? Susan will pay $______ each month. (Round to the nearest cent as needed.) (b) How much will remain on the loan after making payment for 12 year. The amount remaining on the loan will be $______ (c) How much interest will be paid on the total amount of the loan over the course of 30 years? The amount of interest that will be paid is $____ (Round to the nearest cent as needed.)
A contract requires that Bob makes payments of $2946 and $3568 to Jim 24 and 39 months respectively. Bob would like to change the payment structure to a payment of $1590 today, and a second payment made 36 months from today. If the two sets of payments are economically equivalent, and the interest rate is 5.2% compounded quarterly, then what is the amount of the second payment? Give your answer rounded to the nearest cent.
Aaliyah Calderon must pay a $36000 obligation 5 years from now. What end-of-Months payments for the entire time, until the obligation is due, would put the creditor in an equivalent financial position if the creditor can earn 4% compounded Weekly? Payment Amounts Aaliyah wanted to only make payments for 1 year and then let the interest accrue. What end-of-Months payments for 12 Months would put the creditor in an equivalent financial position if the creditor can earn 8% compounded Weekly? Value After 1 Year Needed(USE A TIMELINE) S Payments Needed To Achieve That Amount$
A woman borrows $3000 at %9 compounded monthly, which is to be amortized over 3 years in equal monthly payments. For tax purposes, she needs to know the amount of interest paid during each year of the loan. Find the interest paid during the first year, the second year, and the third year of the loan. (Hint: Find the unpaid balance after 12 payments and after 24 payments. Also see example in your notes.)

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