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.
3 answers
$1556.07
$2004.94 is the size of equal payments due in 18 months and 4 years.
hey Jhanvi can u tell how did u solved it?
1 answer