Mary's lawyer gave her the following two options to settle her invoice. 1)$1900 in 1 month and the balance of $2,800 in 5 months. 2)Two equal payments , one in 21 days and the other in 10 months. If money earned 5.30% p.a. , what was the value of the equal payments in option 2) such that it is equivalent to the payments in option 1).Use now as the focal date for this question.

Mary's lawyer gave her the following two options to settle her invoice. 1)$1900 in 1 month and the balance of $2,800 in 5 months. 2)Two equal payments , one in 21 days and the other in 10 months. If money earned 5.30% p.a. , what was the value of the equal payments in option 2) such that it is equivalent to the payments in option 1).Use now as the focal date for this question.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 12E

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