Payments of $2,500 due now and $6,500 due in 90 days are to be replaced by a $4,000 payment due in 120 days and a final payment due in 180 days from now. If interest is 5.5% annually, determine the value of the final payment if the focal point is 180 days from now.
A) $5,220.67
B) $5,207.38
C) $5,163.45
D) $5,119.80
E) $5,087.63

Question

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The Answer of Payments of $2,500 due now and $6,500 due in 90 days are to be replaced by a $4,000 payment due in 120 days and a final payment due in 180 days from now. If interest is 5.5% annually, determine the value of the final payment if the focal point is 180 days from now.
A) $5,220.67
B) $5,207.38
C) $5,163.45
D) $5,119.80
E) $5,087.63

Payments of $2,500 Due Now and $6,500 Due in 90