Your company must make the following payments to their bank over the upcoming year. They owe $25,000.00 on a loan each month (at times t = 1 to 12 months). They also must pay $420,000.00 for this year's contribution to their employee pension plan; the payment is scheduled at time t = 3 months. Finally, they plan to make payments of $15,000.00 each month on a deferred annuity at times t = 8 to 12 months. Determine an equivalent monthly payment and a single lump-sum payment at the end of the year with the same worth as the required series of payments.

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To determine an equivalent monthly payment and a single lumpsum payment at the end of the year with ... View the full answer