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Q8. A owes B two sums of money: $1000 plus interest at 7% compounded annually, which is due in five years, and $2000 plus interest at 8 % compounded semiannually, which is due in seven years. If both debts are to be paid off by a single payment at the end of six years, find the amount of the payment if money is worth 6% compounded quarterly. a) 4751.73 b) 4700.73 c) 4150.73 d) 4771.73 e) 4761.73

Q8. A owes B two sums of money: $1000 plus interest at 7% compounded annually, which is due in five years, and $2000 plus interest at 8 % compounded semiannually, which is due in seven years. If both debts are to be paid off by a single payment at the end of six years, find the amount of the payment if money is worth 6% compounded quarterly. a) 4751.73 b) 4700.73 c) 4150.73 d) 4771.73 e) 4761.73

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 20P
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Q8. A owes B two sums of money: $1000 plus interest at 7% compounded annually, which is due in five years, and $2000 plus interest at 8% compounded semiannually, which is due in seven years. If both debts are to be paid off by a single payment at the end of six years, find the amount of the payment if money is worth 6% compounded quarterly. a) 4751.73 b) 4700.73 c) 4150.73 d) 4771.73 e) 4761.73
Transcribed Image Text:Q8. A owes B two sums of money: $1000 plus interest at 7% compounded annually, which is due in five years, and $2000 plus interest at 8% compounded semiannually, which is due in seven years. If both debts are to be paid off by a single payment at the end of six years, find the amount of the payment if money is worth 6% compounded quarterly. a) 4751.73 b) 4700.73 c) 4150.73 d) 4771.73 e) 4761.73
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