Sam has to pay $4000 today. Unfortunately, he is out of money and after the discussion with

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Sam has to pay $4000 today. Unfortunately, he is out of money and after the discussion with his creditors they both agree to make two equal payments, one after 3 months and another after 6 months. The creditor would charge a 6% rate of interest.

Calculate the equal amount payments.

Related Book For answer-question

Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

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Posted Date: Dec 28, 2023 12:39 AM

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Sam has to pay $4000 today. Unfortunately, he is out of money and after the discussion with

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To calculate the equal amount payments we can use the present value formula for an ordinary annuity ... View the full answer

Financial Accounting and Reporting a Global Perspective

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