A payment of $13,735 is due in 1 year, $19,500 is due in 4 years, and $8,900 is due in 7 years. What single equivalent payment made today would replace the three original payments? Assume that money earns 5.50% compounded monthly. Round to the nearest cent

A payment of $13,735 is due in 1 year, $19,500 is due in 4 years, and $8,900 is due in 7 years. What single equivalent payment made today would replace the three original payments? Assume that money earns 5.50% compounded monthly. Round to the nearest cent

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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Question

A payment of $13,735 is due in 1 year, $19,500 is due in 4 years, and $8,900 is due in 7
years. What single equivalent payment made today would replace the three original
payments? Assume that money earns 5.50% compounded monthly.
Round to the nearest cent

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