Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000 payments. If the firs of the two $1000 payments is due in one year, and the interest rate is 3.6% compounded monthly, then to the nearest month, in how many months is the second $1000 payment due? Use 1 year from today as your focal date.

Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000 payments. If the firs of the two $1000 payments is due in one year, and the interest rate is 3.6% compounded monthly, then to the nearest month, in how many months is the second $1000 payment due? Use 1 year from today as your focal date.

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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Question

Advanced Math
Payments of $657 and $1000 due 2 years
ago and today respectively are to be
replaced by two $1000 payments. If the first
of the two $1000 payments is due in one
year, and the interest rate is 3.6%
compounded monthly, then to the nearest
month, in how many months is the second
$1000 payment due? Use 1 year from today
as your focal date.

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