Plant Company was supposed to have received a payment of $2,750 3 years ago, and another...
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Plant Company was supposed to have received a payment of $2,750 3 years ago, and another payment of $500 6 years ago from a customer who could not make either payment as scheduled. If the customer would like to settle both the payments today, what total amount would he have to pay Plant Company if interest of 4.74% compounded quarterly is charged? Please include a well-labelled timeline diagram. Full solutions should be shown on separate sheets of paper. Submit your solutions. Plant Company was supposed to have received a payment of $2,750 3 years ago, and another payment of $500 6 years ago from a customer who could not make either payment as scheduled. If the customer would like to settle both the payments today, what total amount would he have to pay Plant Company if interest of 4.74% compounded quarterly is charged? Please include a well-labelled timeline diagram. Full solutions should be shown on separate sheets of paper. Submit your solutions.
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To find the total amount the customer needs to pay today we need to calculate the present value of b... View the full answer
Related Book For
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
Posted Date:
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