Question: What single payment six months from now would be economically equivalent to payments of $1250 due (but not paid) four months ago and $1550 due

What single payment six months from now would be economically equivalent to payments of $1250 due (but not paid) four months ago and $1550 due in 12 months? Assume money can earn 3.7% compounded monthly. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Step by Step Solution

★★★★★

3.44 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Step 1 Interest rate 37 r Monthly Interest rate 3712 030833 Value should be at 6 ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

Q:

Ms. Aldo contributed an office building to Aldo Home Furnishings and Design, a C corporation, in exchange for 30 percent equity interest in the business. The company uses the building to house...

Q:

What single payment six months from now would be equivalent to payments of $500 due (but not paid) four months ago, and $800 due in 12 months? Assume money can earn 7.5% compounded monthly.

Q:

What single payment six months from now would be equivalent to payments of $500 due (but not paid) four months ago, and $800 due in 12 months? Assume money can earn 3.9% compounded monthly.

Q:

What single payment one year from now would be equivalent to $2500 due in three months, and another $2500 due in two years? Money is worth 7% compounded quarterly.

Q:

Ninety days ago Stella signed an agreement with Manon requiring her to make three payments of $400 plus interest 90, 150, and 210 days, respectively, from the date of the agreement. Each payment was...

Q:

Payments of $900 and $1000 are due in 30 days and 210 days, respectively. If money can be invested at 7 %, what single payment 90 days from now is equivalent to the payment stream?

Q:

What single amount, paid three years from now, would be economically equivalent to the combination of $1400 due today and $1800 due in five years, if funds can be invested to earn 6% compounded...

Q:

Ninety days ago Stella signed an agreement with Manon requiring her to make three payments of $400 plus interest 90, 150, and 210 days, respectively, from the date of the agreement. Each payment was...

Q:

Ninety days ago Stella signed an agreement with Manon requiring her to make three payments of $400 plus interest 90, 150, and 210 days, respectively, from the date of the agreement. Each payment was...

Q:

Payments of $900 and $1000 are due in 30 days and 210 days, respectively. If money can be invested at 7 %, what single payment 90 days from now is equivalent to the payment stream?

Q:

What single amount, paid three years from now, would be economically equivalent to the combination of $1400 due today and $1800 due in five years, if funds can be invested to earn 6% compounded...

Q:

The following data was obtained experimentally during the heating of solid A. Use the data to answer the following questions [you may assume that the system is at equilibrium at all times]: 45000...

Q:

A physician, Dr. Suscan, had a patient, Robert Moore, a 55-year-old white male with a history of complex heart problems, hypertension, and unstable ventricular arrhythmias. When he came in...

Q:

what does long - term debt to equity say about the hospital

Q:

The radius of a spherical watermelon is growing at a constant rate of 2 centimeters per week. The thickness of the rind is always one-tenth of the radius. How fast is the volume of the rind growing...

Q:

List the major responsibilities of an accounts payable department.

Q:

An airline manufacturer incurred the following costs last month (in thousands of dollars): a. Airplane seats..............................................................................................

Q:

Describe briefly an internal control activity that would prevent a paid disbursement voucher from being presented for payment a second time.

Q:

The U. S. Department of Transportation requires tire manufacturers to provide tire performance information on the sidewall of a tire to better inform prospective customers as they make purchasing...

Q:

Are cigarettes bad for people? Cigarette smoking involves tar, carbon monoxide, and nicotine (measured in milligrams). The first two are definitely not good for a person's health, and the last...

Q:

What single payment six months from now would be equivalent to payments of $500 due (but not paid) four months ago, and $800 due in 12 months? Assume money can earn 7.5% compounded monthly.

Q:

Joe reflected on his situation at Acme Title Pawn while mowing his lawn. He had been working there for about a year, but was having ever-greater reservations about his job. During all of those years...

Q:

Three payments of $2000 (originally due six months ago, today, and six months from now) have been renegotiated to two payments: $3000 one month from now and a second payment due in four months. What...

Q:

A scheduled payment stream consisted of three payments: $2100 due (but not paid) 1 years ago, $1300 due today, and $800 due in 2 years. What single payment, 6 months from now, would be economically...

Q:

Along with licensing, the purchase of auto insurance for vehicles is required in Canada. Benefits of auto insurance are as follows: Safeguards the investment in the automobile. Pays for medical...

Q:

Along with licensing, the purchase of auto insurance for vehicles is required in Canada. Benefits of auto insurance are as follows: Safeguards the investment in the automobile. Pays for medical...