Scheduled payments of $730 due today, $425 due in 15 months, and $555 due in 27...

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Scheduled payments of $730 due today, $425 due in 15 months, and $555 due in 27 months are to be replaced by a single equivalent amount paid at the focal date of 18 months from today. Money earns 10.9% compounded annually. Using P/Y-C/Y-1 and PMT-0, determine the economically equivalent value for each amount at the focal date and enter the values in the blanks. In your rough work, it may be helpful to draw a timeline with the appropriate focal date for the unknown amount. Round dollar values to 2 decimal places. Moving $730 due today to the focal date: N = A PV = Moving $425 due in 15 months to the focal date: N= A PV= A FV= The single amount at the focal date is = AFV= Moving $555 due in 27 months to the focal date: N= A/ PV= A FV= Scheduled payments of $730 due today, $425 due in 15 months, and $555 due in 27 months are to be replaced by a single equivalent amount paid at the focal date of 18 months from today. Money earns 10.9% compounded annually. Using P/Y-C/Y-1 and PMT-0, determine the economically equivalent value for each amount at the focal date and enter the values in the blanks. In your rough work, it may be helpful to draw a timeline with the appropriate focal date for the unknown amount. Round dollar values to 2 decimal places. Moving $730 due today to the focal date: N = A PV = Moving $425 due in 15 months to the focal date: N= A PV= A FV= The single amount at the focal date is = AFV= Moving $555 due in 27 months to the focal date: N= A/ PV= A FV=

Answer rating: 100% (QA)

To find the economically equivalent value for each amount at the focal date we can use the time valu... View the full answer