Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000 payments. If the firs of the two $1000 payments is due in one year, and the interest rate is 3.6% compounded monthly, then to the nearest month, in how many months is the second $1000 payment due? Use 1 year from today as your focal date.

Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000 payments. If the firs of the two $1000 payments is due in one year, and the interest rate is 3.6% compounded monthly, then to the nearest month, in how many months is the second $1000 payment due? Use 1 year from today as your focal date.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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