Payments of $50,000 due in 200 days and $60,000 due in 600 days are to be replaced by payments of $75,000 today and the balance in 400 days. If money earns 8% compounded daily, calculate the value of the balance payment in 400 days.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 25P
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Payments of $50,000 due in 200 days and $60,000 due in 600 days are to be replaced by payments of $75,000 today and the balance in 400 days. If money earns 8% compounded daily, calculate the value of the balance payment in 400 days.

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