A debt of $3000 is to be paid off in 6 years from now, but instead, it will be settled through three payments: Year 0 3 5 Payment 500 1500 X What will this final payment (X) be if we assume a 6% interest compounded annually?

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...
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A debt of $3000 is to be paid off in 6 years from now, but instead, it will be settled through
three payments:
Year
0
3
5
Payment
500
1500
X
What will this final payment (X) be if we assume a 6% interest compounded annually?
Transcribed Image Text:A debt of $3000 is to be paid off in 6 years from now, but instead, it will be settled through three payments: Year 0 3 5 Payment 500 1500 X What will this final payment (X) be if we assume a 6% interest compounded annually?
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