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You are given two loans, with each loan to be repaid by a single payment in the future. Each payment includes both principal and interest. The first loan is repaid by a 3,000 payment at the end of four years. The interest is accrued at 10% per annum compounded semiannually. The second loan is repaid by a 4,000 payment at the end of five years. The Interest is accrued at 8% per annum compounded semiannually. These two loans are to be consolidated. The consolidated loan is to be repaid by two equal installments of X, with interest at 12% per annum compounded semiannually. The first payment is due immediately and the second payment is due one year from now. Calculate X. a. 2521 b. 2485 C. 2459 d. 2504 e. 2537

You are given two loans, with each loan to be repaid by a single payment in the future. Each payment includes both principal and interest. The first loan is repaid by a 3,000 payment at the end of four years. The interest is accrued at 10% per annum compounded semiannually. The second loan is repaid by a 4,000 payment at the end of five years. The Interest is accrued at 8% per annum compounded semiannually. These two loans are to be consolidated. The consolidated loan is to be repaid by two equal installments of X, with interest at 12% per annum compounded semiannually. The first payment is due immediately and the second payment is due one year from now. Calculate X. a. 2521 b. 2485 C. 2459 d. 2504 e. 2537

Essentials Of Investments
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
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You are given two loans, with each loan to be repaid by a single payment in the future. Each payment includes both principal and interest. The first loan is repaid by a 3,000 payment at the end of four years. The interest is accrued at 10% per annum compounded semiannually. The second loan is repaid by a 4,000 payment at the end of five years. The Interest is accrued at 8% per annum compounded semiannually. These two loans are to be consolidated. The consolidated loan is to be repaid by two equal installments of X, with interest at 12% per annum compounded semiannually. The first payment is due immediately and the second payment is due one year from now. Calculate X. a. 2521 b. 2485 C. 2459 d. 2504 e. 2537
Transcribed Image Text:You are given two loans, with each loan to be repaid by a single payment in the future. Each payment includes both principal and interest. The first loan is repaid by a 3,000 payment at the end of four years. The interest is accrued at 10% per annum compounded semiannually. The second loan is repaid by a 4,000 payment at the end of five years. The Interest is accrued at 8% per annum compounded semiannually. These two loans are to be consolidated. The consolidated loan is to be repaid by two equal installments of X, with interest at 12% per annum compounded semiannually. The first payment is due immediately and the second payment is due one year from now. Calculate X. a. 2521 b. 2485 C. 2459 d. 2504 e. 2537
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