What single amount, paid three years from now, would be economically equivalent to the combination of $2600 due today and $3000 due in five years if funds can be invested to earn % compounded quarterly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Added by Roger R.
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We can use the formula: FV = PV(1 + r/n)^(n*t) where FV is the future value, PV is the present value, r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years. In this case, PV = S2600, r = % (not given), n = Show more…
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