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
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
Problem 1PS
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F61060f4b-b23a-4ee7-a355-bc9a01c2b8eb%2Fce015302-2f15-4ff8-9c04-d7394be9e1d5%2F1wa0jis_processed.png&w=3840&q=75)
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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