A contract requires payments of $4954.00 today, $4004.00 in 3 years, and S 2583.00 in 5 years. When can the contract be fulfilled by a single payment equal to the sum of the required payments if money is worth 7% p.a. compounded semi - annually? State your answer in years and months (from 0 to 11 months).

A contract requires payments of $4954.00 today, $4004.00 in 3 years, and S 2583.00 in 5 years. When can the contract be fulfilled by a single payment equal to the sum of the required payments if money is worth 7% p.a. compounded semi - annually? State your answer in years and months (from 0 to 11 months).

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

A contract requires payments of $4610.00 today, $5440.00 in 2 years, and $4438.00 in 5 years. When can the contract be fulfilled by a single payment equal to the sum of the required payments if money is worth 7% p.a. compounded semi-annually? State your answer in years and months (from 0 to 11 months). The contract can be fulfilled in year(s) and 40001 month(s).
4. A contract requires payments of $3762.00 today, $2666.00 in 2 years, and $5932.00 in 5 years. When can the contract be fulfilled by a single payment equal to the sum of the required payments if money is worth 7% p.a. compounded quarterly? State your answer in years and months (from 0 to 11 months). The contract can be fulfilled in year(s) and month(s).
A contract can be fulfilled by making an immediate payment of $3760, or equal payments at the end of every month for 4 years. What is the size of the monthly payments at 11% per annum compounded quarterly? The monthly payments are_____ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Please help me
A contract calls for a payment of P 1,200 at the beginning of each month for 12 months. At what rate compounded annually would this agreement be equivalent to a cash payment of P 13,590? Select one: O a. 13.63% O b. 10% O c. 12% O d. 12.45%
A contract can be fulfilled by making an immediate payment of $21,100 or equal payments at the end of every six months for 9 years. What is the size of the semi-annually payments at 10.6% compounded semi-annually? Question content area bottom Part 1 The payment is $enter your response here. (Round the final answer to the nearest cent as needed.
A contract requires end-of-month payments of $175 for another 8 1/4 years. What would an investor pay to purchase this contract if she requires a rate of return of 3% compounded monthly? (Do not round intermediate calculations and round your final answer to 2 decimal places.)Investor would pay $
A financial obligation requires payments of $200 today, $250 in three years, and $550 in five years. When can the obligation be discharged by a single payment equal to the sum of the required payments if interest is 4%p.a. compounded monthly?
A leasing contract calls for an immediate payment of $109,000 and nine subsequent $109,000 semiannual payments at six-month intervals. What is the PV of these payments if the annual discount rate is 14%? (Do not round intermediate calculations. Round your answer to 2 decimal places.).
What is the equivalent AW of a one-year contract that pays $6,000 in the first month and increases by $700 for each month thereafter? MARR = 9% compounded monthly. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 0.75% per month. Choose the correct answer below. OA. The AW is $75,608. OB. The AW is $123,339. Oc. The AW is $200,736. OD. The AW is $122,420. OE. The AW is $47,730.
A contract will pay you $5000 per year every other year for the next 30 years. That is, since today is time 0, the contract will pay you $5000 in year 2, 4, 6. 28, 30. The discount rate is 8% compounded semiannually. What is the present value of this contract?
A leasing contract calls for an immediate payment of $108,000 and nine subsequent $108,000 semiannual payments at six-month intervals. What is the PV of these payments if the annual discount rate is 12%? (Hint: First find the semiannual rate that is equivalent to the annual rate.) Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Find the present value of a contract that requires yearly payments of P 11,928 for 20 years. Money is worth 1.45% for the first eight years and 9.14% for the last 12 years.

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