TUici llau dll agreement to make three debt payments to Annalise: 1. $1,500 six months from now 2. $1,800 eighteen months from now 3. $2,100 two years from now Asher would like to settle the entire debt 9 months from now instead. If Annalise is charging interest of 3.2% compounded monthly, determine the economically equivalent value of each original payment in 9 months: $1,500 due 6 months from now = $1,800 due 18 months from now = $2,100 due 2 years from now = What single payment shoud Asher accept 9 months from now?
TUici llau dll agreement to make three debt payments to Annalise: 1. $1,500 six months from now 2. $1,800 eighteen months from now 3. $2,100 two years from now Asher would like to settle the entire debt 9 months from now instead. If Annalise is charging interest of 3.2% compounded monthly, determine the economically equivalent value of each original payment in 9 months: $1,500 due 6 months from now = $1,800 due 18 months from now = $2,100 due 2 years from now = What single payment shoud Asher accept 9 months from now?
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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Transcribed Image Text:Asher had an agreement to make three debt payments to Annalise:
1. $1,500 six months from now
2. $1,800 eighteen months from now
3. $2,100 two years from now
Asher would like to settle the entire debt 9 months from now instead. If Annalise is
charging interest of 3.2% compounded monthly, determine the economically
equivalent value of each original payment in 9 months:
A
$1,500 due 6 months from now =
A
$1,800 due 18 months from now =
$2,100 due 2 years from now =
What single payment shoud Asher accept 9 months from now?
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