A loan is to be paid by installments of $800 1-month from now, $600 3-months from now, and $500 4- months from now. Instead of this payment scheme, the borrower wishes to make one single payment 2 months from now. What is the amount of the alternative single payment using a focal date of 3 months r = 6%? OA. $1890.55 OB. $1905.51 OC. $1896.03 O D. $1901.00

A loan is to be paid by installments of $800 1-month from now, $600 3-months from now, and $500 4- months from now. Instead of this payment scheme, the borrower wishes to make one single payment 2 months from now. What is the amount of the alternative single payment using a focal date of 3 months r = 6%? OA. $1890.55 OB. $1905.51 OC. $1896.03 O D. $1901.00

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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