Graham purchased a business by agreeing to make three payments of $11,000.00 each in 2 months, 7 months, and 13 months. Because of cash flow difficulties, he renegotiated the payment schedule so that he would pay $13,100.00 in 5 months, $11,000.00 in 16 months, and a third payment of $10,000.00. In how many years should he make the third payment if interest is 9% compounded monthly? 

Answer rating: 100% (QA)

how to solve the problem Step 1 Calculate the present value of the original payment schedule Present ... View the full answer