Debt payments of $1,650 and $2,400 are due in five months and nine months, respectively. What single payment is required to settle both debts in one month? Assume a simple interest rate of 7.50% p.a. and use one month from now as the focal date. Round to the nearest cent

Corporate Fin Focused Approach
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ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
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Debt payments of $1,650 and $2,400 are due in five months and nine months,
respectively. What single payment is required to settle both debts in one month?
Assume a simple interest rate of 7.50% p.a. and use one month from now as the
focal date.
Round to the nearest cent
Transcribed Image Text:Debt payments of $1,650 and $2,400 are due in five months and nine months, respectively. What single payment is required to settle both debts in one month? Assume a simple interest rate of 7.50% p.a. and use one month from now as the focal date. Round to the nearest cent
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