Payments of $4,000, $5,200 and $6,500 are due in four months, sixteen months and eighteen months respectively. What is the equivalent payment one year from now if money is worth 6% compounded quarterly?

Payments of $4,000, $5,200 and $6,500 are due in four months, sixteen months and eighteen months respectively. What is the equivalent payment one year from now if money is worth 6% compounded quarterly?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12PROB

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Concept explainers

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.

Question

Payments of $4,000, $5,200 and $6,500 are due in four months, sixteen months and eighteen
months respectively. What is the equivalent payment one year from now if money is worth
6% compounded quarterly?

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