A loan of $8000 will be discharged by a cash payment of $3200 now; $1800 at the end of 4 years; $600 at the end of 6 years, and the last payment at the end of 7 years. If money is worth 4% compounded annually, what is the size of the last payment?
A loan of $8000 will be discharged by a cash payment of $3200 now; $1800 at the end of 4 years; $600 at the end of 6 years, and the last payment at the end of 7 years. If money is worth 4% compounded annually, what is the size of the last payment?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 14P
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A loan of $8000 will be discharged by a cash payment of $3200 now; $1800 at the end of 4 years; $600 at the end of 6 years, and the last payment at the end of 7 years. If money is worth 4% compounded annually, what is the size of the last payment?
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