V4. Samantha was supposed to make a payment of $4,250 in 2 years and another payment for $1,300 in 5 years to Loon Company as part of a payment plan. Instead, she is trying to reach an agreement with the company where she would pay an upfront amount now, and an amount of $500 in 4 years. Assume that money is worth 8.58% compounded quarterly. a. Calculate the equivalent value of the $4,250 payment and the $1,300 payment today. B. calculate the size of the payment required in 5 years to Steele the amount

V4. Samantha was supposed to make a payment of $4,250 in 2 years and another payment for $1,300 in 5 years to Loon Company as part of a payment plan. Instead, she is trying to reach an agreement with the company where she would pay an upfront amount now, and an amount of $500 in 4 years. Assume that money is worth 8.58% compounded quarterly. a. Calculate the equivalent value of the $4,250 payment and the $1,300 payment today. B. calculate the size of the payment required in 5 years to Steele the amount

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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