Question
Only attempt if you have the correct answer please and show working. The last person got it wrong. Your cousin Ray borrows $1500 now, repays
Only attempt if you have the correct answer please and show working. The last person got it wrong.
Your cousin Ray borrows $1500 now, repays $800 in two years, and then borrows $1150 in another three years, all at nominal rates of interest of 11.6% convertible quarterly.
At the same interest rate, t years from now, your other cousin Jay borrows $1850.
If the present value of each of your cousins debts is the same, what is t?
(Assume compound interest at all times.)
Answer =_________________ years. (Round your answer to four places after the decimal.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started