o make a single payment of $2000 at the end of year 7 s $1000, and $900 made at the ends of years 1, 12, and > terest of 5% per annum and the method of equated time

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
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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.
Transcribed Image Text: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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