Scheduled loan payments of $1500 due in 6 months and $1900 due in 21 months are rescheduled as a payment of $2000 due in 3 years and a second payment due in 45 months. Determine the size of the second payment if interest is 7% compounded quarterly and the focal date is 45 months from now.
Scheduled loan payments of $1500 due in 6 months and $1900 due in 21 months are rescheduled as a payment of $2000 due in 3 years and a second payment due in 45 months. Determine the size of the second payment if interest is 7% compounded quarterly and the focal date is 45 months from now.
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Answer
I / Y 7; C / Y 4; i = 7%/4 = 1.75% = 0.0175 E 1 = 1500.00(1.0175) 13 = 1500.00(1.2…View the full answer
Related Book For 
Contemporary Business Mathematics with Canadian Applications
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
ISBN: 978-0133052312