Scheduled payments of $890 due today, $525 due in 15 months, and $555 due in 33 months are to be replaced by a single equivalent amount paid at the focal date of 6 months from today. Money earns 11.1% compounded quarterly. Using P/Y=C/Y=4 and PMT=0, determine the economically equivalent value for each amount at the focal date and enter the values in the blanks. In your rough work, it may be helpful to draw a timeline with the appropriate focal date for the unknown amount. Round dollar values to 2 decimal places. Moving $890 due today to the focal date: A/ PV = Moving $525 due in 15 months to the focal date: N = A/ PV = Moving $555 due in 33 months to the focal date: N = A/ PV = N= The single amount at the focal date is = FV = A FV = A FV= A/ A

Scheduled payments of $890 due today, $525 due in 15 months, and $555 due in 33 months are to be replaced by a single equivalent amount paid at the focal date of 6 months from today. Money earns 11.1% compounded quarterly. Using P/Y=C/Y=4 and PMT=0, determine the economically equivalent value for each amount at the focal date and enter the values in the blanks. In your rough work, it may be helpful to draw a timeline with the appropriate focal date for the unknown amount. Round dollar values to 2 decimal places. Moving $890 due today to the focal date: A/ PV = Moving $525 due in 15 months to the focal date: N = A/ PV = Moving $555 due in 33 months to the focal date: N = A/ PV = N= The single amount at the focal date is = FV = A FV = A FV= A/ A

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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Similar questions

A payment of $3,160 was due three years ago, and a payment of $1,150 is due today. What single payment three years from now would be equivalent to these original payments? Assume that money earns 5.25% compounded quarterly. Please include a well-labelled timeline diagram. Full solutions should be shown on separate sheets of paper. Submit your solutions. Round to the nearest cent
Three payments are scheduled as follows: $1,500 is due today, $1,200 is due in five months, and $2,100 is due in eight months. The three payments are to be replaced by a single equivalent payment due ten months from now. What should the payment be if money is worth 6.5%? Use ten months from now as the focal date. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment LA
Three payments are scheduled as follows: $1,500 is due today, $1,200 is due in five months, and $2,100 is due in eight months. The three payments are to be replaced by a single equivalent payment due ten months from now. What should the payment be if money is worth 6.5%? Use ten months from now as the focal date. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment $
Payment of $942 due 1 months ago and $439 due today are to be repaid by a payment of $400 one month from today and the balance in 9 months from now. If money is worth 4% compounded monthly, and the agreed focal date is 9 months from today. What is the size of the final payment? Please express your answer to the nearest dollar. Sample input: 2456 for $2456.
Using either logarithms or a graphing calculator, find the time required for the initial amount to be at least equal to the final amount. $6900, deposited at 8.6% compounded monthly, to reach at least $10,000 The time required is year(s) and [ months. ***
A payment stream consisting of $1807 due (but not paid) 9 months ago, and $4042 due in 8 months is to be replaced with the following equivalent set of payments: an unknown payment due today, and a payment of $1727 due in 17 months. What is the amount of the payment due today if the rate of simple interest is 4.28% ? Give your answer rounded to the nearest cent and use today as the focal date.
Using either logarithms or a graphing calculator, find the time required for the initial amount to be at least equal to the final amount. $7000, deposited at 7% compounded quarterly, to reach at least $8000 The time required is year(s). (Type an integer or decimal rounded up to the next quarter.)
Payments of $3,700, due 70 days ago, and $4,200, due in 60 days, are to be replaced by payments of $4,100 due today and the balance due in 30 days. What must the second payment be if the payee is to end up in an equivalent financial position? Money now earns 8.80%. Use 30 days from now as the focal date. (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)
Complete the following using the financial calculator: (Round your final answer to the nearest cent.) PV of amount desired at end of period Amount desired at end of period Length of time 9,900 6 years Rate Compounded 9% Monthly Period used Periodic rate
2. Scheduled payments of $1,010 due five months ago and $1,280 due today are to be repaid by a payment of $615 in four months and the balance in seven months. If money is worth 7.75% p.a. and the focal date is in seven months, what is the amount of the final payment?
Scheduled payments of $732 due one year ago and $1476 due in six years are to be replaced by two equal payments. The first replacement payment is due in two years and the second payment is due in eight years. Determine the size of the two replacement payments if interest is 6.1% compounded quarterly and the focal date is two years from now. The size Of the two replacement payments is? Give typing answer with explanation and conclusion
Create an amortization table for a $60,000 loan. We will assume payments are made monthly over 6 years at an interest rate of 4%. a.) First use a formula cell in your spreadsheet to calculate the monthly payment amount. b.) Create an amortization table for the 72 months. Your columns of your amortization table should include payment number, payment amount, interest paid each month, principle paid that month, amount paid on principal total, and the amount of principal remaining.

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