Bozo (the clown) owes $4000 due in one year and $8,000 due in six years. Unfortunately, due to lack of attendance at the circus, Bozo is unable to meet the $4000 obligation. By mutual consent with the lender Bozo is allowed to pay off both loans after 4 years at 8% monthly. How much does Bozo pay?

Bozo (the clown) owes $4000 due in one year and $8,000 due in six years. Unfortunately, due to lack of attendance at the circus, Bozo is unable to meet the $4000 obligation. By mutual consent with the lender Bozo is allowed to pay off both loans after 4 years at 8% monthly. How much does Bozo pay?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 79P

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Question

) Bozo (the clown) owes $4000 due in one year and $8,000 due in six years. Unfortunately, due to lack of
attendance at the circus, Bozo is unable to meet the $4000 obligation. By mutual consent with the lender Bozo is
allowed to pay off both loans after 4 years at 8% monthly. How much does Bozo pay?

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