What equal payments in 3 years and 4 years would replace payments of $32,500 and $62,500 in 7 years and 8 years, respectively? Assume money can earn 3.54% compounded semi-annually. Use 8 years as the focal date.

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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What equal payments in 3 years and 4 years would replace payments of
$32,500 and $62,500 in 7 years and 8 years, respectively? Assume money
can earn 3.54% compounded semi-annually. Use 8 years as the focal date.
Transcribed Image Text:What equal payments in 3 years and 4 years would replace payments of $32,500 and $62,500 in 7 years and 8 years, respectively? Assume money can earn 3.54% compounded semi-annually. Use 8 years as the focal date.
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