Scheduled payments of $900 due in 3 months with interest at 11% compounded quarterly and $800 due

Question:

Scheduled payments of $900 due in 3 months with interest at 11% compounded quarterly and $800 due in 30 months with interest at 11% compounded quarterly are to be replaced by two equal payments. The first replacement payment is due today and the second payment is due in three years. Determine the size of the two replacement payments if interest is 9% compounded monthly and the focal date is today.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

Question Posted: