Kathleen has a $650 loan payment due in five months. What amount of money should she be able to pay today if the interest on her loan is 3.75% per annum?

What amount paid on September 5 is equivalent to $2,500 paid on the following December 1 if money can earn 6.5%?

Item3

To settle a $640 invoice, Anna can pay $620 now or the full amount 90 days later.

a.Which alternative should she choose if money can earn

123

4

%

1234%?

Pay $620 now

b.What rate would money have to earn for Anna to be indifferent between the alternatives?(Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)

A payment stream consists of three payments: $2,100 due today, $2,600 due 80 days from today, and $3,100 due 200 days from today. What single payment, 70 days from today, is economically equivalent to the payment stream if money can be invested at a rate of 4.6%?(Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)

A payment of $1,020 scheduled to be paid today and a second payment of $1,310 to be paid in eight months from today are to be replaced by a single equivalent payment.

What total payment made today would place the payee in the same financial position as the scheduled payments if money can earn 5.25%?(Do not round intermediate calculations and round your final answer to 2 decimal places.)

Payments of $2,900, due 50 days ago, and $3,400, due in 40 days, are to be replaced by payments of $3,300 due today and the balance due in 30 days. What must the second payment be if the payee is to end up in an equivalent financial position? Money now earns 8.40%. Use 30 days from now as the focal date.(Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)

A $1,400 loan at 5.9% was repaid by two equal payments made 30 days and 60 days after the date of the loan. Determine the amount of each payment. Use the loan date as the focal date.(Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)