Payments of $5000 due four months ago and $3000 due two months from now are to be

Fantastic news! We've Found the answer you've been seeking!

Question:

Payments of $5000 due four months ago and $3000 due two months from now are to be replaced by a payment of $4000 today and a second payment in six months. What must the second payment be in order to make the replacement payment stream equivalent to the scheduled payment stream? Money in short-term investments can earn 5% simple interest. Use six months from now as the focal date

$3075

$4000

$4340.58

$3776.23

$4133.33

QUESTION 2

A $6200 loan was secured at 6.75% simple interest. Equal payments were negotiated to be due in 1 month, 3 months and 6 months, respectively, after the date of the loan. Determine the size of the equal payments.

$1996.44

$2066.67

$2098.02

$2074.80

$2105.15

QUESTION 3

Scheduled payments of $8,000 and $9,000 are due 2 years and 3 years from today. The payments have been replaced by a $5,000 in four years and another payment one year from now. Determine the value of the final payment if interest is 3.85% compounded monthly.

$11,408.68

$11,352.15

$11,762.43

$11,576.93

$11,981.07

QUESTION 4

Payments of $4,000 and $3,500 were originally scheduled to be paid two years and 4 years from today. They are to be replaced by a $5,000 payment 3 years from today and anther payment in 6 years. Determine the value of the final payment if interest is 4% compounded quarterly.

$2,917.67

$2,846.18

$3,182.07

$2,752.46

$3,478.22