Two payments of $14,000 and $3,400 are due in 1 year and 2 years, respectively. Calculate the two equal payments that would replace these payments, made in 3 months and in 4 years if money is worth 10.5% compounded quarterly.
Two payments of $14,000 and $3,400 are due in 1 year and 2 years, respectively. Calculate the two equal payments that would replace these payments, made in 3 months and in 4 years if money is worth 10.5% compounded quarterly.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 25P
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Two payments of $14,000 and $3,400 are due in 1 year and 2 years, respectively. Calculate the two equal payments that would replace these payments, made in 3 months and in 4 years if money is worth 10.5% compounded quarterly.
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