V4. Samantha was supposed to make a payment of $4,250 in 2 years and another payment for $1,300 in 5 years to Loon Company as part of a payment plan. Instead, she is trying to reach an agreement with the company where she would pay an upfront amount now, and an amount of $500 in 4 years. Assume that money is worth 8.58% compounded quarterly. a. Calculate the equivalent value of the $4,250 payment and the $1,300 payment today. B. calculate the size of the payment required in 5 years to Steele the amount
V4. Samantha was supposed to make a payment of $4,250 in 2 years and another payment for $1,300 in 5 years to Loon Company as part of a payment plan. Instead, she is trying to reach an agreement with the company where she would pay an upfront amount now, and an amount of $500 in 4 years. Assume that money is worth 8.58% compounded quarterly. a. Calculate the equivalent value of the $4,250 payment and the $1,300 payment today. B. calculate the size of the payment required in 5 years to Steele the amount
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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V4. Samantha was supposed to make a payment of $4,250 in 2 years and another payment for $1,300 in 5 years to Loon Company as part of a payment plan. Instead, she is trying to reach an agreement with the company where she would pay an upfront amount now, and an amount of $500 in 4 years. Assume that money is worth 8.58% compounded quarterly. a. Calculate the equivalent value of the $4,250 payment and the $1,300 payment today. B. calculate the size of the payment required in 5 years to Steele the amount
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