A loan payment of $1124 was due 49 days ago and another payment of $2664 is due 45days from now. What single payment 90 days from now will pay off the two obligation ifinterest is to be 5% and the agreed focal date is 90 days from now? Answer to thenearest cent, ie two decimals.

The present value concept refers to the current worth of a future sum of money, considering the time…

Answered: A loan payment of $1124 was due 49 days…

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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A loan payment of $1124 was due 49 days ago and another payment of $2664 is due 45 days from now. What single payment 90 days from now will pay off the two obligation if interest is to be 5% and the agreed focal date is 90 days from now? Answer to the nearest cent, ie two decimals.