Patricia initially borrowed $6,700 from CIBC Bank at 2.9% compounded quarterly.After 4 years she repaid $1,809, then 6 years after the $6,700 was initially borrowedshe repaid $2,010. If she pays off the debt 9 years after the $6,700 was initiallyborrowed, how much should her final payment be to clear the debt completely? Roundall answers to two decimal places if necessary.P/Y = 4%PV = $ 6700P/Y = 4%PV = $ 5711.92C/Y = 4Amount owed after 4 years (before the first payment) = $ 7,520.92✓positive value)PMT= $ 0P/Y =PV = $Amount owed after the first payment of $1,809 (enter a positive value): $ 5711.92 ✓C/Y = 4PMT= $0N = 16C/Y =PMT = $FV = $ 7,520.92✓N =N = 12Amount owed after 6 years (before the second payment) = $5816.91 x (enter apositive value)Amount owed after the second payment of $2,010 (enter a positive value): $FV = $FV = $5816.91 XI/Y = 2.9Final payment (after 9 years); (enter a positive value) $(enter aX I/Y = 2.9I/Y =%

The FV of an investment refers to the value of the investment at a particular future date assuming…

Patricia initially borrowed $6,700 from CIBC Bank at 2.9% compounded quarterly. After 4 years she repaid $1,809, then 6 years after the $6,700 was initially borrowed she repaid $2,010. If she pays off the debt 9 years after the $6,700 was initially borrowed, how much should her final payment be to clear the debt completely? Round all answers to two decimal places if necessary. P/Y = 4 % PV = $ 6700 P/Y = 4 % PV = $ 5711.92 C/Y = 4 PMT= $ 0 Amount owed after 4 years (before the first payment) = $7,520.92 (enter a positive value) P/Y = Amount owed after the first payment of $1,809 (enter a positive value): $ 5711.92 PV = $ C/Y = 4 PMT = $ 0 N = 16 C/Y = PMT = $ FV = $ 7,520.92✓ N= Amount owed after 6 years (before the second payment) = $5816.91 x (enter a positive value) Amount owed after the second payment of $2,010 (enter a positive value): $ N = 12 FV = $ I/Y = 2.9 FV = $5816.91 x X I/Y = 2.9 Final payment (after 9 years); (enter a positive value) $ I/Y= %

Patricia initially borrowed $6,700 from CIBC Bank at 2.9% compounded quarterly. After 4 years she repaid $1,809, then 6 years after the $6,700 was initially borrowed she repaid $2,010. If she pays off the debt 9 years after the $6,700 was initially borrowed, how much should her final payment be to clear the debt completely? Round all answers to two decimal places if necessary. P/Y = 4 % PV = $ 6700 P/Y = 4 % PV = $ 5711.92 C/Y = 4 PMT= $ 0 Amount owed after 4 years (before the first payment) = $7,520.92 (enter a positive value) P/Y = Amount owed after the first payment of $1,809 (enter a positive value): $ 5711.92 PV = $ C/Y = 4 PMT = $ 0 N = 16 C/Y = PMT = $ FV = $ 7,520.92✓ N= Amount owed after 6 years (before the second payment) = $5816.91 x (enter a positive value) Amount owed after the second payment of $2,010 (enter a positive value): $ N = 12 FV = $ I/Y = 2.9 FV = $5816.91 x X I/Y = 2.9 Final payment (after 9 years); (enter a positive value) $ I/Y= %

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 2STP

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