Peter Penniless owes Wendy Worth $5 000 due in two years from now, and $3 000 due in five years from now. He agrees to pay $4 000 immediately and settle his outstanding debt completely three years from now. How much must he pay then if they agree that the money is worth 12% per annum compounded half-yearly?
Peter Penniless owes Wendy Worth $5 000 due in two years from now, and $3 000 due in five years from now. He agrees to pay $4 000 immediately and settle his outstanding debt completely three years from now. How much must he pay then if they agree that the money is worth 12% per annum compounded half-yearly?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 5E
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Peter Penniless owes Wendy Worth $5 000 due in two years from now, and $3 000 due in five years from now. He agrees to pay $4 000 immediately and settle his outstanding debt completely three years from now. How much must he pay then if they agree that the money is worth 12% per annum compounded half-yearly?
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