Question

A debt of RM 4,400 due in two years and another RM 7,700 due in seven...

A debt of RM 4,400 due in two years and another RM 7,700 due in seven years will be settled by making a single payment four years from now.Find the total payment assuming that money is worth 5% compounded quarterly. Use the fourth year as the focal date.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 10 (4 marks) A debt of RM6,500 due 5 months ago and another RM12,750 due...
Question 10 A debt of RM6,500 due 5 months ago and another RM12,750 due in 13 months are to be settled by making two equal payments, one at the end of four months, one at the end of seven months. Find the size of payment using, the four month as the focal date. Assuming money is worth 9% per annum simple interest. Question 11 Find the value in 3 years’ time of RM16,200 invested at 5% compounded annually. In the...
1) A debt of RM3000 due 4 months ago and another RM5000 due in twenty months...
1) A debt of RM3000 due 4 months ago and another RM5000 due in twenty months are to be settled by two equal payments, one at the end of four months and the other at the end of ten months. Find the size of the payments using (a)The present as the focal date, (b)the ten months as the focal date. Assuming money is worth 9% per annum simple interest. 2) Bernard borrows RM8889 at 15% per annum simple interest. He...
Scheduled debt payments of $1500.00 due seven months ago, $1200.00 due two months ago, and $1800.00...
Scheduled debt payments of $1500.00 due seven months ago, $1200.00 due two months ago, and $1800.00 due in five months are to be settled by two equal payments now and three months from now respectively. Determine the size of the equal replacement payments at 9% p.a. compounded monthly.
2. Scheduled debt payments of $1500.00 due seven months ago, $1200.00 due two months ago, and...
2. Scheduled debt payments of $1500.00 due seven months ago, $1200.00 due two months ago, and $1800.00 due in five months are to be settled by two equal payments now and three months from now respectively. Determine the size of the equal replacement payments at 9% p.a. compounded monthly. (15 points)
Scheduled payments of 1288$ due two years ago and 708$ due in six years are to...
Scheduled payments of 1288$ due two years ago and 708$ due in six years are to be replace by two equal payments. The first replacement payment is due in one year and the second payment is due in nine years. Determine the size of the two replacement payments if interest is 7.5% compounded monthly and the focal date is one year from now.
Mrs. Grey borrowed $5000 due in 18 months with interest at 6.50% compounded quarterly. The lender...
Mrs. Grey borrowed $5000 due in 18 months with interest at 6.50% compounded quarterly. The lender agrees to have her pay $1500 in four months, $1000 in one year and the balance in two years. If the money is worth 5.00% compounded monthly, calculate the payment two years from now that would liquidate Mrs. Greys debt.
What three equal payments, one in 3 years, one in 5 years, and one in 6...
What three equal payments, one in 3 years, one in 5 years, and one in 6 years would replace one single payment of $20,000 due today at an interest rate of 5.22% compounding quarterly? Use 'today' as the focal date.
Mae is due to make a payment of $1000 now. Instead, she has negotiated two equal...
Mae is due to make a payment of $1000 now. Instead, she has negotiated two equal payments, one year and two years from now. Determine the size of the equal payments if money is worth 8% compounded quarterly. *
Jeffrey invested money in a mutual fund for seven years. The interest rate on the mutual...
Jeffrey invested money in a mutual fund for seven years. The interest rate on the mutual fund was 5% compounded quarterly for the first three years and 3% compounded semi-annually for the next four years. At the end of the seven years, Jeffrey's mutual fund had accumulated to $35,198.50. a. Calculate the amount that was in the mutual fund after the first three years when the interest rate changed. Round to the nearest cent b. Calculate the amount that was...
A company borrowed $45,000 for 3 years at 5% compounded monthly. It will NOT make any...
A company borrowed $45,000 for 3 years at 5% compounded monthly. It will NOT make any payments on this loan prior to maturity. (a) Find the total future value the company will need to accumulate to pay off this debt. Show all work. (b) Use the result of part (a) to find the quarterly sinking fund payment needed to accumulate this maturity value (over the the 3 years), assuming 4% rate. show all work
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT