Question

1. Three payments are scheduled as follows: $1200 is due today, $900 is due in five months and $1500 is due in eight months. The three payments are to be replaced by a single payment, due 9 months from now. If money can earn 5.9%, what should the payment be? Use 9 months from now as the focal date. Round to the nearest cent. (8 marks)

Name: 1 three payments are scheduled as follows 1200 is due today 900 is due in five months and 1500 is due in eight months the three payments are to be replaced by a single payment due 9 months f 25111
Uploaded: 2023-07-30T10:49:36-08:00
Duration: 3 min 30 s
Channel: Sri K
Description: 1 three payments are scheduled as follows 1200 is due today 900 is due in five months and 1500 is due in eight months the three payments are to be replaced by a single payment due 9 months f 25111

          1.	Three payments are scheduled as follows: $1200 is due today, $900 is due in five months and $1500 is due in eight months. The three payments are to be replaced by a single payment, due 9 months from now.  If money can earn 5.9%, what should the payment be? Use 9 months from now as the focal date. Round to the nearest cent.     (8 marks)

Added by -Ngel O.

Calculus: Early Transcendentals

James Stewart 8th Edition

Instant Answer

Solved by Expert Sri K

07/30/2023

Step 1

We will use the formula for future value: \[ FV = PV \times (1 + r)^n \] where $ FV $ is the future value, $ PV $ is the present value, $ r $ is the interest rate per period, and $ n $ is the number of periods. Show more…

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1. Three payments are scheduled as follows: $1200 is due today, $900 is due in five months and $1500 is due in eight months. The three payments are to be replaced by a single payment, due 9 months from now. If money can earn 5.9%, what should the payment be? Use 9 months from now as the focal date. Round to the nearest cent. (8 marks)