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ments. The first replacement payment is due in three years and the second payment is due in termine the size of the two replacement payments if interest is 5.8% compounded semi-annuall e is three years from now. ...

ments. The first replacement payment is due in three years and the second payment is due in termine the size of the two replacement payments if interest is 5.8% compounded semi-annuall e is three years from now. ...

Essentials Of Investments
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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Scheduled payments of $1323 due one year ago and $866 due in four years are to be replaced by two equal payments. The first replacement payment is due in three years and the second payment is due in eight years. Determine the size of the two replacement payments if interest is 5.8% compounded semi-annually and the focal date is three years from now. The size of the two replacement payments is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Transcribed Image Text:Scheduled payments of $1323 due one year ago and $866 due in four years are to be replaced by two equal payments. The first replacement payment is due in three years and the second payment is due in eight years. Determine the size of the two replacement payments if interest is 5.8% compounded semi-annually and the focal date is three years from now. The size of the two replacement payments is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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