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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
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 ? A. $2493.59 B. $3038.93 C. $3395.34 D. $3581.68 Step by Step Solution
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Financial Accounting And Reporting
Authors: Barry Elliott, Jamie Elliott
13th Edition
0273730045, 978-0273730040
