years. What single equivalent payment made today would replace the three original payments? Assume that money earns 6.50% compounded monthly.

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
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A payment of $11,620 is due in 2 year, $17,500 is due in 5 years, and $8,350 is due in 7
years. What single equivalent payment made today would replace the three original
payments? Assume that money earns 6.50% compounded monthly.
Round to the nearest cent
Transcribed Image Text:A payment of $11,620 is due in 2 year, $17,500 is due in 5 years, and $8,350 is due in 7 years. What single equivalent payment made today would replace the three original payments? Assume that money earns 6.50% compounded monthly. Round to the nearest cent
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