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5 years from now payments: $500 of 6 years. What est rate of 6% cc

5 years from now payments: $500 of 6 years. What est rate of 6% cc

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 5P
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A debt of $600 is due 3 years from now and $800 due 5 years from now, is instead to be paid off by two payments: $500 nowand a final payment at the end of 6 years. What would this payment be if an interest rate of 6% compounded quarterly is assumed?
Transcribed Image Text:A debt of $600 is due 3 years from now and $800 due 5 years from now, is instead to be paid off by two payments: $500 nowand a final payment at the end of 6 years. What would this payment be if an interest rate of 6% compounded quarterly is assumed?
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