Question

Scheduled payments of $1400 due today and $1600 due with interest at 11.5% compounded annually in five years are to be replaced by two equal payments. The first replacement payment is due in 18 months and the second payment is due in 4 years. Determine the size of the two replacement payments if interest is 11% compounded quarterly and the focal date is 18 months from now.

Oct 31, 2018

$1556.07

Nov 3, 2019

$2004.94 is the size of equal payments due in 18 months and 4 years.

Jul 27, 2021

hey Jhanvi can u tell how did u solved it?

Mar 3, 2022

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