If money earns interest at 4.4% compounded quarterly, what is the equivalent single payment 2 years from now of three payments of $1200, $1600, and $1800 due, but not paid, in 6 months, 18 months, and 30 months from now, respectively. (Note: Although a time line is not required on the test, it is highly recommended that you create one on a scrap piece of paper to ensure accuracy in answering the question)
If money earns interest at 4.4% compounded quarterly, what is the equivalent single payment 2 years from now of three payments of $1200, $1600, and $1800 due, but not paid, in 6 months, 18 months, and 30 months from now, respectively. (Note: Although a time line is not required on the test, it is highly recommended that you create one on a scrap piece of paper to ensure accuracy in answering the question)
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
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Transcribed Image Text:If money earns interest at 4.4% compounded quarterly, what is the equivalent single
payment 2 years from now of three payments of $1200, $1600, and $1800 due, but
not paid, in 6 months, 18 months, and 30 months from now, respectively.
(Note: Although a time line is not required on the test, it is highly recommended that
you create one on a scrap piece of paper to ensure accuracy in answering the
question)
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