Today Mario owes $1,500 due in 3 years at an effective rate of 15%, plus owes $3000 due in 5 years at 20% simple interest, negotiates cancellation your debt in two equal payments, the first two years from now and the second at the end of the fourth year, if the rate of return for this trade is 16% of annual simple interest, determine the amount of the payments. Focal date at the end of the quarter year.

Answer rating: 100% (QA)

To solve this problem we will first calculate the present value PV of the two future debts that Mari... View the full answer