Find the equated date at which the originat payments are equivalent to the single payment State your answer in years and months (from 0 to 11 months)Original PaymentsSingle Payment$1047 00 due today and$1308.00 due in 4 yearsInterestRate5%Frequency ofConversionsemi-annually$2624 59In year(s) and month's) the single payment will be equivalent to the original payments

The time value of money recognizes the idea that the value of an amount of money today differs from…

Answered: In year(s) and month(s) the single…

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

The (blank) interest rate is referred to as APR and the (blank) interest rate is the true rate considering compounding periods per year
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The number of compounding periods is equal to: O Number of years x rate O Number of years number of times compounded per year O Number of years x number of times compounded per year O Number of years + rate
The balance sheet for Shankland Corporation follows: 000'009 $ 000006 Current assets Long-term assets (net) Total assets Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings 000 0000 000 00 000 009' 000 006 Total liabilities and stockholders' equity 000'00s Required Compute the following. (Round "Ratios" to 1 decimal place.) Working capital Current ratio Debt-to-assets ratio Debt-to-equity ratio
Compute the nominal rate of intrrest at which $980 deposited at the end of eaach month quaretly for 11 years and 9 months will amount to $34000.00
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A debt of $1908 with interest at 6.3% compounded annually is to be repaid by equal payments at the end of each year for 4 years. 1. What is the balance remaining (BAL) after the first payment? 2. What is the principal repaid (PRN) in the first period? 3. What is the interest paid (INT) in the first period?
Assume that time is measured in months. Calculate the present value at time 0 of a payment of £131 paid at time 18, using an interest rate of 9% per annum effective.
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David would like to make a single payment of $2000 at the end of year 7 so that it will be equivalent to payments of $100, $1000, and $900 made at the ends of years 1, 12, and X years, respectively. Assuming an effective rate of interest of 5% per annum and the method of equated time, solve for X. Round your answer to 2 decimal places.
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In year(s) and month(s) the single payment will be equivalent to the original payments