Jorge is unable to make a $4,500 payment due today. He proposes to settle the obligation by making three equal payments-one today, another in four months, and a third in nine months. What must each payment be to make the proposed payment stream equivalent to the scheduled payment if money can earn 7.2% compounded monthly?

Question

Quizplus · Accepted Answer

The Answer of Jorge is unable to make a $4,500 payment due today. He proposes to settle the obligation by making three equal payments-one today, another in four months, and a third in nine months. What must each payment be to make the proposed payment stream equivalent to the scheduled payment if money can earn 7.2% compounded monthly?

Jorge Is Unable to Make a $4,500 Payment Due Today