A debt of $1500 due in three years and $3500 due in eight years is to be

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A debt of $1500 due in three years and $3500 due in eight years is to be repaid by a single payment of$1000 a year from now and a second payment at the end of five years.

How much should the second paymentbe if interest is at 2% compounded annually?

Related Book For answer-question

Governmental and Nonprofit Accounting

ISBN: 978-0132751261

10th edition

Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi

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Posted Date: Apr 18, 2023 11:32 PM

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A debt of $1500 due in three years and $3500 due in eight years is to be

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To find out the amount of the second payment we need to determine the present value of the remaining ... View the full answer

Governmental and Nonprofit Accounting

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