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The bank is offering a deal to D&D which would see them getting US$10,000 for the next 6 months starting next month end and a
The bank is offering a deal to D&D which would see them getting US$10,000 for the next 6 months starting next month end and a further US$7,000 starting two months after the end of the first series of payment and running for six months. D&D informs you they would rather an equivalent single payment at the end of seven months from now. Determine the required single payment if the rate of discount is 8% per annum compounded monthly.
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