Jason owes $42000 due at the end of 3 years with interest at j4 = 2.5%. In order to payoff the loan Jason decides to make deposits in a fund that earns ja = 13%. The first deposit is $10000 at the end of 9 months and $X at the end of 27 months. Determine X using the end of 3 years as a focal date? Answer: $
Jason owes $42000 due at the end of 3 years with interest at j4 = 2.5%. In order to payoff the loan Jason decides to make deposits in a fund that earns ja = 13%. The first deposit is $10000 at the end of 9 months and $X at the end of 27 months. Determine X using the end of 3 years as a focal date? Answer: $
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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![Jason owes $42000 due at the end of 3 years with interest at j4 = 2.5%. In order to payoff the loan Jason decides to make deposits in a fund that earns j4 = 13%.
The first deposit is $10000 at the end of 9 months and $X at the end of 27 months. Determine X using the end of 3 years as a focal date?
Answer: $
Note: Do not round any intermediate calculations.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe7a3a66d-c290-45fe-a7c9-2a55b25abb62%2F2c1fdb2f-7688-4558-ada3-c98b0c50b1ed%2Fecmvoca_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jason owes $42000 due at the end of 3 years with interest at j4 = 2.5%. In order to payoff the loan Jason decides to make deposits in a fund that earns j4 = 13%.
The first deposit is $10000 at the end of 9 months and $X at the end of 27 months. Determine X using the end of 3 years as a focal date?
Answer: $
Note: Do not round any intermediate calculations.
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