You borrow $5000 today. The loan is due in 5 years, with interest at j1 = 7%. It is agreed that you can instead pay $1000 one year from now, $X two years from now and $2000 three years from now. If money is worth j4 = 8%, what is the value of X?

You borrow $5000 today. The loan is due in 5 years, with interest at j1 = 7%. It is agreed that you can instead pay $1000 one year from now, $X two years from now and $2000 three years from now. If money is worth j4 = 8%, what is the value of X?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9EA: If you invest $12,000 today, how much will you have in (for further Instructions on future value in...

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Do mot give excel answer, i need explained answer. You borrow $5000 today. The loan is due in 5 years, with interest at j1 = 7%. It is agreed that you can instead pay $1000 one year from now, $X two years from now and $2000 three years from now. If money is worth j4 = 8%, what is the value of X?

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