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A Debt Payment in the Amount of $2000

Question 69

Essay

A debt payment in the amount of $2000.00 due today, is to be settled by a payment of $1500.00 nine months from now and a final payment in 18 months. Determine the size of the final payment if the money is worth 12% p.a. compounded quarterly. Use the Banker's Method.

Correct Answer:

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In 9 months: FV = 2000.00(1.03...

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