7 Two debts, the first of $1900 due three months ago and the second of $800 borrowed one year ago for a term of three years at 33% compounded annually, are to be replaced by a single paymentone year from now. Determine the size of the replacement payment if interest is 2.3% compounded quarterly and the focal date is one year from now.CHEThe size of the replacement payment is $(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

We first need to find the FV of the loan that was due 3 months ago using the formula below FV1900 =…

Answered: The size of the replacement payment is…

The size of the replacement payment is $ (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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Question

Two debts, the first of $1900 due three months ago and the second of $800 borrowed one year ago for a term of three years at 33% compounded annually, are to be replaced by a single payment
one year from now. Determine the size of the replacement payment if interest is 2.3% compounded quarterly and the focal date is one year from now.
CHE
The size of the replacement payment is $
(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

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