Dan borrowed $1496.00 today and is to repay the loan in two equal payments. The first payment is in three months, and the second payment is in eleven months. If interest is 7% per annum on the loan, what is the size of the equalpayments? Use today as the focal date.The size of the equal payments is $.(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Let the equal installments be X.PV= C/(1+r)^nWhere C= Cashflows = X,r= 7%n= time in years = 3 months…

Answered: Dan borrowed $1496.00 today and is to…

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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