Loan payments of $3200 due two years ago and $2300 due in six years are to be replaced by two equal payments. The first replacement payment is due now and the second payment is due in eight years. Determine the size of the tworeplacement payments if interest is 3% compounded semi-annually and the focal date is now.The size of the two replacement payments is $(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Loan payments of $3200 due two years ago and $2300 due in six years are to be replaced by two equal payments. Thefirst replacement payment is due now and the second payment is due in eight years. Determine the size of the tworeplacement payments if interest is 3% compounded semi-annually and the focal date is now.The size of the two replacement payments is $(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Given rate of interest =3%=0.03 Computation of present value of loan payment due 2 years ago,=3200…

Answered: Loan payments of $3200 due two years…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 13E

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Loan payments of $3200 due two years ago and $2300 due in six years are to be replaced by two equal payments. The first replacement payment is due now and the second payment is due in eight years. Determine the size of the two

replacement payments if interest is 3% compounded semi-annually and the focal date is now.The size of the two replacement payments is $(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

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