Determine the value of the single payment on November 8, 2023 that is economically equivalent to a payment stream consisting of: . a payment of $10,670 on April 3, 2023, ● a payment of $9,970 on September 6, 2023, ● a payment of $8,250 on January 31, 2024. Assume a simple interest rate of 3.1%. Apr. 3, 2023 + $10,670 FV2 = = $ FV1 = $ PV3 = Start by calculating the following values on the time diagram: Total $ - Sep. 6, 2023 The single payment on November 8, 2023 is: $9,970 $ Nov. 8, 2023 FV2 FVI + PV3 Total Jan. 31, 2024 $8,250 o

Determine the value of the single payment on November 8, 2023 that is economically equivalent to a payment stream consisting of: . a payment of $10,670 on April 3, 2023, ● a payment of $9,970 on September 6, 2023, ● a payment of $8,250 on January 31, 2024. Assume a simple interest rate of 3.1%. Apr. 3, 2023 + $10,670 FV2 = = $ FV1 = $ PV3 = Start by calculating the following values on the time diagram: Total $ - Sep. 6, 2023 The single payment on November 8, 2023 is: $9,970 $ Nov. 8, 2023 FV2 FVI + PV3 Total Jan. 31, 2024 $8,250 o

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 13E

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