|
Title: A $17 200 debt will accumulate for six years at 11.6% compounded semi-annually. For how much will ... Post by: majarm on Nov 26, 2017 A $17 200 debt will accumulate for six years at 11.6% compounded semi-annually. For how much will the debt sell four years after it was incurred if the buyer of the debt charges 9% compounded quarterly?
Title: Re: A $17 200 debt will accumulate for six years at 11.6% compounded semi-annually. For how much ... Post by: rmaccara on Nov 26, 2017 Maturity value: PV = 17200.00; i = 11.6%/2 = 5.8%; n = 12
FV = 17200.00(1.058)12 = 17200.00(1.9671071) = $33 834.24 Proceeds: i = 0.09/4 = 0.0225 N = 2 × 4 = 8 PV = 33834.24(1.0225)-8 = 33834.24(.8369383) = $28 317.17 |