11. An original debt required payments of $3000 due in 5 months as well as $5000 due in 10 months. Instead, it is agreed that a payment of X dollars, made in 4 months, followed by a payment of $4000 in 11 months, will replace the original set of debt payments. Using 10 months as the focal date, what is X if the simple interest rate on the loan is r = 12%?

11. An original debt required payments of $3000 due in 5 months as well as $5000 due in 10 months. Instead, it is agreed that a payment of X dollars, made in 4 months, followed by a payment of $4000 in 11 months, will replace the original set of debt payments. Using 10 months as the focal date, what is X if the simple interest rate on the loan is r = 12%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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