Nikita owes $ 3500 in 6 months and another $ 2500 in 11 months. What single payment in 9 months would settle both payments? Assume an interest rate of 0.75% p.m. and choose 9 months from now as the focal date.

Nikita owes $ 3500 in 6 months and another $ 2500 in 11 months. What single payment in 9 months would settle both payments? Assume an interest rate of 0.75% p.m. and choose 9 months from now as the focal date.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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Nikita owes $ 3500 in 6 months and another $ 2500 in 11 months. What single payment in 9 months would settle both payments?
Assume an interest rate of 0.75% p.m. and choose 9 months from now as the focal date.

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