Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 A . Ms . Amy financed her car today from her friend for $ 2 5 , 0 0 0 . She agrees

Question 1
A. Ms. Amy financed her car today from her friend for $25,000. She agrees to pay the loan in what amounts in two installments. Cost installment she will pay in one year. And the second in two years. What is the size of the equal payment at 7.6% p.a compounded quarterly?
B. Mr sam owes his friend Jake and he agreed to pay Jake $2,500 in six months and $4,500 in 3 years with interest at 6.9% p.a. Compounded semiannually. Mr Sam face some financial problem so he renegotiated the payment plain with Jake. As per the new payment plan he agrees to pay $3,000 in one year from now and one more final payment in 4 years. Whats the size of Sams final payment if the money is worth 12.12% p.a. Compounded quarterly?
Answer part A and B and provide formulas and full steps.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Multinational Finance

Authors: Kirt Butler

2nd Edition

0324004508, 978-0324004502

More Books

Students also viewed these Finance questions

Question

gpt 6 9 9 . " "

Answered: 1 week ago

Question

Between 1% to 3% of infants and toddlers meet criteria for GDD.

Answered: 1 week ago