Question
Seth works in the finance department of a large corporation. His company has the following debts to the same creditor: $98,000 due in 2 years;
Seth works in the finance department of a large corporation. His company has the following debts to the same creditor: $98,000 due in 2 years; $203,000 due in 4 years, and $157,000 due in 6 years. Seth wants to align these payments with the maturity dates of his companys investments. He proposes to the creditor three payments due 1 years, 4 years, and 5 years from today. The second payment is to be twice the size of the first payment and the third payment is to be three-quarters the size of the second payment. If the creditor agrees to an interest rate of 7.25% compounded quarterly, calculate the amounts of each payment.
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