Scheduled payments of $2300 due 18 months ago and $3100 due in three years from now are
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Scheduled payments of $2300 due 18 months ago and $3100 due in three years from now are to be replaced by two payments—$2000 due today and a second payment of undetermined size due in four years from now. What must the second payment be for the two streams to be economically equivalent? Assume that money can earn 4.75% compounded semiannually.
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Let x represent the replacement payment due in 4 years The equivalent value of the scheduled ...View the full answer
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Related Book For 
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
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