A payment of $2798.6 due 9 months ago and payment of $2925.6 due in 4 months are to be repaid by a single equivalent pay today. Given the interest rate charged is 2.91%, what is the size of the single equivalent payment? (Hint: use "today") as the focal date)

A payment of $2798.6 due 9 months ago and payment of $2925.6 due in 4 months are to be repaid by a single equivalent pay today. Given the interest rate charged is 2.91%, what is the size of the single equivalent payment? (Hint: use "today") as the focal date)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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