Thomas was supposed to make a payment of $4,250 in 1 year and another payment for $700
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Question:
Thomas was supposed to make a payment of $4,250 in 1 year and another payment for $700 in 7 years to Maroon Inc. as part of a payment plan. Instead, she is trying to reach an agreement with the company where she would settle both payments in 5 years. Assume that money is worth 4.91% compounded semi-annually.
a. Calculate the equivalent value of the $4,250 payment and the $700 payment today. $0.00 Round to the nearest cent
b. Calculate the size of the payment required in 5 years to settle the amount. $0.00
Related Book For
Andersons Business Law and the Legal Environment
ISBN: 978-1133587583
22nd edition
Authors: David P. Twomey, Marianne M. Jennings
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