A debt can be paid by payments of $1000 scheduled today, $500 schedule in two years, $2000 scheduled in three years. What single payment would settle the debt 4years from now if the money is worth 10% compounded semi-annually?

A debt can be paid by payments of $1000 scheduled today, $500 schedule in two years, $2000 scheduled in three years. What single payment would settle the debt 4years from now if the money is worth 10% compounded semi-annually?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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