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Information You have settled a dispute with a neighbor, and agree to make semi-onnuni payments to him for 5 years. Starting 6 months from now,

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Information You have settled a dispute with a neighbor, and agree to make semi-onnuni payments to him for 5 years. Starting 6 months from now, you will pay him \$500. Every 6 months thoreafter, you will make another payment that is 2.49 larger than the previous payment. In other words, In 6 months you will pay $500, then 6 months later you will pay 2.4% more than that payment, with payments continuing to grow until 5 years are over. Your neighbor suggests that you pay him $5,000.00 today, to be done with the payments. You decide that the appropriate semi-annual periodic interest rate is 3.2% (.032). Ignore taxes. You value the payments to see if your neighbor's offer is in your best interest. What are the payments worth? Q 20 (1 point) Starting at T=1, the number of payments is Select one: a. 5 b. 6 c. 10 d. 12 e. 50 f. 60 g. 90 h. 120 Q 21 (2 points) You will calculate how much the payments are worth today. This is a Select one: a. PV problem b. FV

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