Payments of $1,200 in 1 year and another $2,500 in 6 years to settle a loan are to be rescheduled with a payment of $900 in 14 months and the balance in 30 months. Calculate the payment required in 30 months for the rescheduled option to settle the loan if money earns 3.8% compounded monthly during the above periods.
Payments of $1,200 in 1 year and another $2,500 in 6 years to settle a loan are to be rescheduled with a payment of $900 in 14 months and the balance in 30 months. Calculate the payment required in 30 months for the rescheduled option to settle the loan if money earns 3.8% compounded monthly during the above periods.
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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Transcribed Image Text:Payments of $1,200 in 1 year and another $2,500 in 6 years to settle a loan are to be
rescheduled with a payment of $900 in 14 months and the balance in 30 months.
Calculate the payment required in 30 months for the rescheduled option to settle the
loan if money earns 3.8% compounded monthly during the above periods.
Round to the nearest cent
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