Scheduled payments of $3000 due today and $2000 due in 15 months are to be replaced by

Question:

Scheduled payments of $3000 due today and $2000 due in 15 months are to be replaced by two payments—$1500 due in 15 months and a second payment of undetermined size due in 24 months. What must the second payment be for the two streams to be economically equivalent? Assume that money can earn 6% compounded quarterly.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

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