What total payment made today would place the payee in the same financial position as the scheduled payi 4.25%? (Do not round intermediate calculations and round your final answer to 2 decimal places.) ents il mo Equivalent payment 24

What total payment made today would place the payee in the same financial position as the scheduled payi 4.25%? (Do not round intermediate calculations and round your final answer to 2 decimal places.) ents il mo Equivalent payment 24

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A payment of $870 scheduled to be paid today and a second payment of $1,160 to be paid in nine months from today are to be
replaced by a single equivalent payment.
What total payment made today would place the payee in the same financial position as the scheduled payments if money can earn
4.25%? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Equivalent payment
$4
5. of 7
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