Two payments of $18,000 and $3,700 are due in 1 year and 2 years, respectively. Calculate the two equal payments that would replace these payments, made in 9 months and in 4 years if money is worth 10% compounded quarterly.

Q: nil Two payments of $8,000 and $2,400 are due in 1 year and 2 years, respectively. Calculate the…

A: Present value is the equivalent value today of the future value and the present value of both…

Q: What equal payments in 3 years and 5 years would replace payments of $47,500 and $72,500 in 6 years…

A: The concept of time value of money will be used here. As per this concept money has the power to…

Q: Debts of $850 due in six months, $700 due in sixteen months, and $1100 due in three years are to be…

A: Time value of money is a concept of interest consideration in a transaction. Present value is…

Q: Scheduled payments of $732 due one year ago and $1476 due in six years are to be replaced by two…

A: Two scheduled payments are to be replaced by two equal replacement payments. Quantum and timing of…

Q: What equal payments in 2 years and 5 years would replace payments of $ 37,500 and $97, 500 in 7…

A: Periodic payment refers to an amount that is being paid at every period including the interest and…

Q: What payment, made at the end of each year for 11 years, will accumulate to $14,500 at 6% compounded…

A: Here the effective annual rate (ear) will be computed first.EAR = (1+(given rate/m))^m-1Given rate…

Q: years. What single equivalent payment made today would replace the three original payments? Assume…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: Two payments of $16,000 and $2,500 are due in 1 year and 2 years, respectively. Calculate the two…

A: Answer  Interest Yearly 10.5% Compound Quarterly Quarterly Interest Rate 10.5%/4   2.63%…

Q: What equal payments in 2 years and 4 years would replace payments of $32, 500 and $72, 500 in 7…

A: The concept of time value of money will be used here. As per this concept money has the power to…

Q: A payment of $25,000 is due today. What three equal payments, one in 3 years, one in 5 years, and…

A: Present Value refers to a concept that states the discounted value or say value at today's time of…

Q: cheduled payments of $1,400 due today and $1,600 due with interest at 11.5% compounded annually in…

A: In this we have to calculate the present values of both options and equate them with payment.

Q: a series of 12 annual payments of $2400 is equivalent to three equal payments, one each at the end…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Scheduled payments of $1,400 due today and $1,600 due with interest at 11.5% compounded annually in…

A: The formula to calculate the present value of future cash inflow is C/(1+r)n, where C is the cash…

Q: An annuity purchased for $195,000 pays $6,000 at the end of every quarter. How long will the…

A: The term "annuity" refers to an insurance contract created and distributed by financial institutions…

Q: Two payments of $14,000 and $3,400 are due in 1 year and 2 years, respectively. Calculate the two…

A: To replace the payments of different periods, we will first compute the NPV of payments to be…

Q: A payment of $17,000 is due in 1 year and $11,000 is due in 2 years. What two equal payments, one in…

A: Given : Annual interest rate is 3.25% So quarterly interest rate = 3.25/4 = 0.8125% We assume two…

Q: Compute to the penny the present value of $5,000 dollars to be paid at the end of four years if (a)…

A: Future value is a financial concept that refers to the projected value of an investment or asset at…

Q: cheduled payments of $1049, $1055, and $1459 are due in one year, three-and-a-half years, and five…

A: First, we need to determine the PV of each payment using the formula below:Then we need to take the…

Q: Two payments of $12,000 and & 3,400 are due in 1 year and 2 years, respectively. Calculate the two…

A: Discounting is a technique to compute present value (PV) of future cashflows by considering…

Q: Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000…

A: The concept of TVM is used to compare the value of money at different times based on the interest…

Q: Scheduled payments of $825, $352, and $ 1045 are due in one year, four and a half years, and five…

A: The term equivalent payment considers the original amount along with the interest to date. The…

Q: Two payments of $7,500 each must be made three years and six years from now. If money can earn 8.4%…

A:

Q: wo payments of $16,000 and $6,800 are due in 1 year and 2 years, respec alculate the two equal…

A: Present value of money would give the required money today that is equivalent to future payment to…

Q: Scheduled payments of $721 due two years ago and $464 due in four years are to be replaced by two…

A: Two future payments are to be replaced by two equal payments. Timing of all the payments are known.…

Q: An annuity purchased for $175,000 pays $4,000 at the end of every quarter. How long will the…

A: Compounding refers to the process where the interest is determined on the principal and interest…

Q: Scheduled payments of $1054, $789, and $508 are due in one-and-a-half years, four years, and six…

A: Here, Schedule payment (FV)  $1,054.00 Time period (NPER) 1.50 Schedule payment (FV)  $789.00…

Q: Calculate the future value of end-of-quarter payments of $5,000 made at 6.10% compounded monthly for…

A: Given rate is 6.1% compounded monthly effective annual rate is = (1+0.061/12)^12 -1 = 6.2734% Rate…