A payment of $26,000 is due today. What three equal payments, one in 3 years, the 14 years, and one in 7 years, would replace the original payment? Assume that money earns 5.75% compounded semi-annually.
A payment of $26,000 is due today. What three equal payments, one in 3 years, the 14 years, and one in 7 years, would replace the original payment? Assume that money earns 5.75% compounded semi-annually.
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 10P
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Transcribed Image Text:A payment of $26,000 is due today. What three equal payments, one in 3 years, one in 4
years, and one in 7 years, would replace the original payment? Assume that money
earns 5.75% compounded semi-annually.
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