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Your friend was supposed to repay a loan with a loan payment of $1,200 due in 6 months and another loan payment of $1,600 due in 3 years. However, your friend agrees to make two payments that replace the originally scheduled payments. The first replacement payment of $X is due in 2 years and the second replacement payment of $1,800 is due in 4 years. Suppose the interest is 5.6% p.a. compounded quarterly and the focal date is 2 years from now (Year 2), your friend asks for your help to determine the size of the second replacement payment, $X. Answer the following question: If you use the financial calculator TVM keys to solve for the focal date equivalent values, which TVM key on the financial calculator should be set equal to zero? Your friend was supposed to repay a loan with a loan payment of $1,200 due in 6 months and another loan payment of $1,600 due in 3 years. However, your friend agrees to make two payments that replace the originally scheduled payments. The first replacement payment of $X is due in 2 years and the second replacement payment of $1,800 is due in 4 years. Suppose the interest is 5.6% p.a. compounded quarterly and the focal date is 2 years from now (Year 2), your friend asks for your help to determine the size of the second replacement payment, $X. Answer the following question: If you use the financial calculator TVM keys to solve for the focal date equivalent values, which TVM key on the financial calculator should be set equal to zero?
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Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
Posted Date:
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