3. Two debt payments, the first in the amount of $1600.00 due today, and the second in the amount of $7200.00 due in 15 months with interest at 9.6% p.a. compounded quarterly, are to be settled by a payment of $3400.00 nine months from now and a final payment in 21 months. Determine the size of the final payment if the money is worth 12.12% p.a. compounded monthly. Select one: a.$5,400.00 b.$6,750.48 c.$5,787.66 d.$6,092.09

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 8E: Cash Flow Amounts R. Lee Rouse borrows 10,000 that is to be repaid in 24 equal monthly installments...
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3. Two debt payments, the first in the amount
of $1600.00 due today, and the second in the
amount of $7200.00 due in 15 months with
interest at 9.6% p.a. compounded quarterly,
are to be settled by a payment of $3400.00
nine months from now and a final payment in
21 months. Determine the size of the final
payment if the money is worth 12.12% p.a.
compounded monthly.
Select one:
a.$5,400.00
b.$6,750.48
c.$5,787.66
d.$6,092.09
Transcribed Image Text:3. Two debt payments, the first in the amount of $1600.00 due today, and the second in the amount of $7200.00 due in 15 months with interest at 9.6% p.a. compounded quarterly, are to be settled by a payment of $3400.00 nine months from now and a final payment in 21 months. Determine the size of the final payment if the money is worth 12.12% p.a. compounded monthly. Select one: a.$5,400.00 b.$6,750.48 c.$5,787.66 d.$6,092.09
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