|
Title: A debt can be repaid by payments of $1000.00 today, and $3000.00 in two years. What single payment ... Post by: majarm on Nov 26, 2017 A debt can be repaid by payments of $1000.00 today, and $3000.00 in two years. What single payment would settle the debt three years from now if money is worth 16% p.a. compounded semi-annually?
Title: Re: A debt can be repaid by payments of $1000.00 today, and $3000.00 in two years. What single ... Post by: rmaccara on Nov 26, 2017 Let the single payment be $x. Let the focal date be 3 years from now. i = 0.08.
x = 1000.00(1.08)6 + 3000.00(1.08)2 x = 1000.00(1.586874323) + 3000.00(.1664) x = 1586.87 + 3499.20 x = $5086.07 |