Question
A loan of $5000 is taken out today. It is due with interest at j 4 = 8% in 2 years. Instead, the borrower negotiates
A loan of $5000 is taken out today. It is due with interest at j4 = 8% in 2 years. Instead, the borrower negotiates with the lender to pay $2500 in 1 year and $X in 3 years. If the lender can reinvest any payment at j2 = 5%, what is the value of X?
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Investing For Non Finance People Essentials To Start Managing Your Own Investments
Authors: Tero Toivanen
1st Edition
1986017648, 978-1986017640
