A contract requires that Bob makes payments of $2946 and $3568 to Jim 24 and 39 months respectively. Bob would like to change the payment structure to a payment of $1590 today, and a second payment made 36 months from today. If the two sets of payments are economically equivalent, and the interest rate is 5.2% compounded quarterly, then what is the amount of the second payment? Give your answer rounded to the nearest cent.

A contract requires that Bob makes payments of $2946 and $3568 to Jim 24 and 39 months respectively. Bob would like to change the payment structure to a payment of $1590 today, and a second payment made 36 months from today. If the two sets of payments are economically equivalent, and the interest rate is 5.2% compounded quarterly, then what is the amount of the second payment? Give your answer rounded to the nearest cent.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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