Scheduled payments of $730 due today, $945 due in 3 months, and $935 due in 6 months are to be replaced by a single equivalent amount paid at the focal date of 27 months from today. Money earns 9.6% compounded annually. Using P/Y=C/Y-1 and PMT-0, determine the economically equivalent value for each amount at the focal date and enter the values in the blanks. In your rough work, it may be helpful to draw a timeline with the appropriate focal date for the unknown amount. Round dollar values to 2 decimal places. Moving $730 due today to the focal date: N= A PV= Moving $945 due in 3 months to the focal date: N= A PV= Moving $935 due in 6 months to the focal date: N= A PV = N FV- AFV= AFV =

Scheduled payments of $730 due today, $945 due in 3 months, and $935 due in 6 months are to be replaced by a single equivalent amount paid at the focal date of 27 months from today. Money earns 9.6% compounded annually. Using P/Y=C/Y-1 and PMT-0, determine the economically equivalent value for each amount at the focal date and enter the values in the blanks. In your rough work, it may be helpful to draw a timeline with the appropriate focal date for the unknown amount. Round dollar values to 2 decimal places. Moving $730 due today to the focal date: N= A PV= Moving $945 due in 3 months to the focal date: N= A PV= Moving $935 due in 6 months to the focal date: N= A PV = N FV- AFV= AFV =

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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