A $6400 payment due 3 1/2 years ago has not been paid. If money can earn 3.95% compounded annually, what amount paid 4 1/2 years from now would be the economic equivalent of the missed payment? (Round your answer to 2 declmal places.) Equivalent payment

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 10P: The D.J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new...
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A $6400 payment due 3 1/2 years ago has not been paid. if money can earn 3.95% compounded annually, what amount paid 4 1/2
years from now would be the economic equivalent of the missed payment? (Round your answer to 2declmal places)
Equivalent payment
30:56
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2 23
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Transcribed Image Text:A $6400 payment due 3 1/2 years ago has not been paid. if money can earn 3.95% compounded annually, what amount paid 4 1/2 years from now would be the economic equivalent of the missed payment? (Round your answer to 2declmal places) Equivalent payment 30:56 <Frev 2 23 Next >
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