scheduled payments of 400$ due now and 700$ due in five months are to be settled by payment of 500$ in three months and final payment in 8 months. determine the amount of the final payment at 6% p.a, using 8 months from now as fhthe focal date

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 5RE: Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit...
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scheduled payments of 400$ due
now and 700$ due in five months
are to be settled by payment of
500$ in three months and final
payment in 8 months. determine
the amount of the final payment at
6% p.a, using 8 months from
now as fhthe focal date
Transcribed Image Text:scheduled payments of 400$ due now and 700$ due in five months are to be settled by payment of 500$ in three months and final payment in 8 months. determine the amount of the final payment at 6% p.a, using 8 months from now as fhthe focal date
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