Scheduled payments of $825, $352, and $ 1045 are due in one year, four and a half years, and five anda half years respectively. What is the equivalent single replacement payment two and a half years fromnow if interest is 3.1% compounded semi annually?

The term equivalent payment considers the original amount along with the interest to date. The…

Answered: Scheduled payments of $825, $352, and $…

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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Scheduled payments of $825, $352, and $ 1045 are due in one year, four and a half years, and five and a half years respectively. What is the equivalent single replacement payment two and a half years from now if interest is 3.1% compounded semi annually?