Question
Two debts, the first of $1400 due nine months ago and the second of $1300 borrowed two years ago for a term of four years
Two debts, the first of $1400 due nine months ago and the second of $1300 borrowed two years ago for a term of four years at 10.1% compounded annually, are to be replaced by a single payment one year from now. Determine the size of the replacement payment if interest is 9.1% compounded quarterly and the focal date is one year from now.
The size of the replacement payment is = ?
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
