An obligation of $25,000 is due today, but it was decided to pay the debt in two equal payments one 2 year and the other 5 years from now. If the focal date is today, and the rate of interest is 4.15% compounded quarterly, how much is each payment?
An obligation of $25,000 is due today, but it was decided to pay the debt in two equal payments one 2 year and the other 5 years from now. If the focal date is today, and the rate of interest is 4.15% compounded quarterly, how much is each payment?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 5P
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Transcribed Image Text:An obligation of $25,000 is due today, but it was decided to pay the debt in two equal
payments one 2 year and the other 5 years from now. If the focal date is today, and the rate
of interest is 4.15% compounded quarterly, how much is each payment?
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