Two debt payments, the first in the amount of $1600.00 due today, and the second in the amount of $7200.00 due in 15 months with interest at 9.6% p.a. compounded quarterly, are to be settled by a payment of $3400.00 nine months from now and a final payment in 21 months. Determine the size of the final payment if the money is worth 12.12% p.a. compounded monthly. Select one: a. $5,787.66 b. $6,750.48 c. $5,400.00 d. $6,092.09
Two debt payments, the first in the amount of $1600.00 due today, and the second in the amount of $7200.00 due in 15 months with interest at 9.6% p.a. compounded quarterly, are to be settled by a payment of $3400.00 nine months from now and a final payment in 21 months. Determine the size of the final payment if the money is worth 12.12% p.a. compounded monthly. Select one: a. $5,787.66 b. $6,750.48 c. $5,400.00 d. $6,092.09
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Two debt payments, the first in the amount of $1600.00 due today, and the second in the amount of $7200.00 due in 15 months with interest at 9.6% p.a. compounded quarterly, are to be settled by a payment of $3400.00 nine months from now and a final payment in 21 months. Determine the size of the final payment if the money is worth 12.12% p.a. compounded monthly.
Select one:
a.
$5,787.66
b.
$6,750.48
c.
$5,400.00
d.
$6,092.09
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