An assignable loan contract executed 3 months ago requires two payments of $3200 plus interest at 9%

Question:

An assignable loan contract executed 3 months ago requires two payments of $3200 plus interest at 9% from the date of the contract, to be paid 4 and 8 months after the contract date. The payee is offering to sell the contract to a finance company in order to raise urgently needed cash. If the finance company requires a 16% rate of return, what price will it be prepared to pay today for the contract?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: