Loan payments of $1,100 due 100 days ago and $1,950 due 82 days ago are to be replaced by a payment of $1,200 today and the balance 132 days from today. If money is worth 7.0% p.a. and the agreed focal date is 132 days from today, what is the size of the final payment?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
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Loan payments of $1,100 due 100 days ago and $1,950 due 82 days ago
are to be replaced by a payment of $1,200 today and the balance 132
days from today. If money is worth 7.0% p.a. and the agreed focal date is
132 days from today, what is the size of the final payment?
Transcribed Image Text:Loan payments of $1,100 due 100 days ago and $1,950 due 82 days ago are to be replaced by a payment of $1,200 today and the balance 132 days from today. If money is worth 7.0% p.a. and the agreed focal date is 132 days from today, what is the size of the final payment?
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