Question
1) A non-interest bearing eight year note for $5000 issued August 1, 2008 is discounted April 1, 2011 at 6.5% compounded semi-annually. Find the compound
1) A non-interest bearing eight year note for $5000 issued August 1, 2008 is discounted April 1, 2011 at 6.5% compounded semi-annually. Find the compound discount.
2) Scheduled loan payments of $2000 due in six months and $2300 due in 21 months are rescheduled as payment of $3000 due in three years and a second payment due in 45 months. Determine the size of the second payment if interest is 8% compounded quarterly and the focal date is 45 months from now
3) Scheduled payments of $800 due in six months and $800 in one year are to be replaced by two equal payments. The first replacement payment s due today and the second payment is due in two years. Determine the size of the two replacement payments if interest is 9% compounded monthly and the focal date is today.
4) Scheduled payments of $400 each are due at the end of each of the next four years. If money is worth 11% compounded semi-annually, what i s the single equivalent replacement for now and for four years from now respectively?
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