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A debtor offers to repay a debt by making a payment of $300 one year from today, $2,700 three years from today, and $4,100 four
A debtor offers to repay a debt by making a payment of $300 one year from today, $2,700 three years from today, and $4,100 four years from today. The lending agency would rather receive the money in 4 equal end of year payments. Assuming a TVOM of 8%, how much would the debtor need to pay to make these cash flows equivalent?
Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is 2.
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