Mohinder has financial obligations of $1000 due in 3½ years and $2000 due in 5½ years. He wishes to settle the obligations sooner with a single payment one year from now. If money is worth 7.75% compounded semiannually, what amount should the payee be willing to accept?

Question

Quizplus · Accepted Answer

The Answer of Mohinder has financial obligations of $1000 due in 3½ years and $2000 due in 5½ years. He wishes to settle the obligations sooner with a single payment one year from now. If money is worth 7.75% compounded semiannually, what amount should the payee be willing to accept?

Mohinder Has Financial Obligations of $1000 Due in 3½ Years