Replacing a payment of $1,000 today, and $2,000 in 4 months, With a single equivalent payment...

  

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Replacing a payment of $1,000 today, and $2,000 in 4 months, With a single equivalent payment in one year. (Money is worth is 9% p.a.) Equivalent payment (total) Now $1,000 Now 12 mo, back Month 4 $2,000 Start by dragging both payments to the focal date. Focal Date Month 12 Month 12 Replacing a payment of $1,000 today, and $2,000 in 4 months, With a single equivalent payment in one year. (Money is worth is 9% p.a.) Equivalent payment (total) Now $1,000 Now 12 mo, back Month 4 $2,000 Start by dragging both payments to the focal date. Focal Date Month 12 Month 12

Answer rating: 100% (QA)

To find the equivalent payment we need to calculate the future value of both payments and then disco... View the full answer