1 Franklin owes the followingamounts to the same person:$16,000 due today, $11,500 duein 1¹ years, $17,000 due in 23years, and $15,000 due in 414years. He wants to make a singlepayment of $56,500 instead.Using an interest rate of 8%compounded quarterly, in howmany months from today shouldthis payment be made? Roundanswer to zero decimal places

First, we are going to discount every payment due to PV using the formula below: PV = CFn(1+r)nWhere…

Answered: Using an interest rate of 8% compounded…

Using an interest rate of 8% compounded quarterly, in how many months from today should this payment be made? Round answer to zero decimal places

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

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Question

Franklin owes the following
amounts to the same person:
$16,000 due today, $11,500 due
in 1¹ years, $17,000 due in 23
years, and $15,000 due in 414
years. He wants to make a single
payment of $56,500 instead.
Using an interest rate of 8%
compounded quarterly, in how
many months from today should
this payment be made? Round
answer to zero decimal places

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