A debt of $7500 due in four years and $8500 due in five years is to be repaid by a single payment of $7000 now and two equal payments that are due each consecutive year from now. If the interest rate is 11% compounded annually, how much are each of the equal payments?

Answer rating: 100% (QA)

To solve this problem we need to find the present value of the future debt payments and then calcula... View the full answer