You borrow $5000 now and agree to pay this whole amount back in three payments Poyment 1. SX in 2 months Poyment 2 $2X in 6 months Payment 3. $2X in 10 months a) Determine X Gyearly) interest is at 11.0% compounded monthly b) Determine X if yearly) interest is at 11.0% compounded continuously Note: Do not use your calculator for this problem; type in an expression which represents the exact answer for parts a) and b). You must convert interest rate to the exact values, for example 10.1%-

You borrow $5000 now and agree to pay this whole amount back in three payments Poyment 1. SX in 2 months Poyment 2 $2X in 6 months Payment 3. $2X in 10 months a) Determine X Gyearly) interest is at 11.0% compounded monthly b) Determine X if yearly) interest is at 11.0% compounded continuously Note: Do not use your calculator for this problem; type in an expression which represents the exact answer for parts a) and b). You must convert interest rate to the exact values, for example 10.1%-

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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