What single payment one year from now will satisfy two obligations: $4,000 due today and $6,000 due 18 months from now? Assume that money can earn 14%.
A) $5,083.74
B) $5,000.00
C) $10,980.00
D) $10,167.48
E) $5,490.00

Question

Quizplus · Accepted Answer

To find the single payment one year from now, calculate the present value of the $6,000 due in 18 months and the future value of the $4,000 due today, both at 14% interest. Then sum these values to find the equivalent single payment.

What Single Payment One Year from Now Will Satisfy Two