Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

A person has a debt made up of the following payments: $ 22,000 from today to 2 months, $ 57,000 from today to 5 months

A person has a debt made up of the following payments: $ 22,000 from today to 2 months, $ 57,000 from today to 5 months and $ 90,000 from today to 7 months. You want to exchange these obligations for 4 payments, the first of which will be paid in month 4 representing 50% of the debt at the time and the rest of the debt must be paid in 3 equal and consecutive monthly installments starting from month 8. Consider a nominal interest rate = 24%/year with monthly capitalization. What is the value of the installments paid as of the 8th month?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions