Question 3 Danny plans to pay $4200.00 today, $3800.00 in 2.5 years and $1950.00 in 5 years. He now thinks to make a single payment to settle all the debts 3.5 years from now if money is worth 7.6% p.a. compounded quarterly. Calculate the size of the single payment. - 10 marks Step 1. Draw timeline here: 2 marks What is Focal Date in this question? Step 2. Fill in blanks - the values: 4 marks m = Debt 1: : FV = PV = :n = Debt 2: PV = : FV = Debt 3 t= n = PV = : FV = Step 3. Formula and Calculation: 4 marks BIU SEE S'S TC 12 Question 3 Danny plans to pay $4200.00 today, $3800.00 in 2.5 years and $1950.00 in 5 years. He now thinks to make a single payment to settle all the debts 3.5 years from now if money is worth 7.6% p.a. compounded quarterly. Calculate the size of the single payment. - 10 marks Step 1. Draw timeline here: 2 marks What is Focal Date in this question? Step 2. Fill in blanks - the values: 4 marks m = Debt 1: : FV = PV = :n = Debt 2: PV = : FV = Debt 3 t= n = PV = : FV = Step 3. Formula and Calculation: 4 marks BIU SEE S'S TC 12