A friend wants to borrow money from you. He states that he will pay you $3,900 every 6 months for 7 years with the first payment exactly 7 years and sixmonths from today. The interest rate is 6.2 percent compounded semiannually. What is the value of the payments today?Multiple Choice$35,805.70$28,718.70$29,488.70$27,679.39

Annuity is series of uniform periodic payments that are paid in sequence without any break in…

s to borrow money from you. He states that he will pay you $3,900 every 6 months for 7 years with the oday. The interest rate is 6.2 percent compounded semiannually. What is the value of the payments to Choice $35,805.70 $28,718.70 $29,488.70

s to borrow money from you. He states that he will pay you $3,900 every 6 months for 7 years with the oday. The interest rate is 6.2 percent compounded semiannually. What is the value of the payments to Choice $35,805.70 $28,718.70 $29,488.70

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 11RE: Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the...

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Question

A friend wants to borrow money from you. He states that he will pay you $3,900 every 6 months for 7 years with the first payment exactly 7 years and six
months from today. The interest rate is 6.2 percent compounded semiannually. What is the value of the payments today?
Multiple Choice
$35,805.70
$28,718.70
$29,488.70
$27,679.39

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