suppressive
New member
- Joined
- Feb 16, 2015
- Messages
- 7
Hey all, first time poster here.
I'm working on a problem to which I have the answer to, but I can't seem to figure out how I get there.
Answer: 2351.17
So what I did so far was calculate the present value payments for each of the first three time periods listed in the question.
Present value for four months:
=4000/(1+0.1275/12*4) = 3836.93
Present value for eight months:
=4000/(1+0.1275/12*8) = 3686.636
Present value for twelve months:
=4000(1+0.1275/12*12) = 3547.672
Adding these together gives me:
11071.24
I'm not sure where to go from here however. Dividing that sum by 5 gives me the wrong answer so I'm trying to see what else I can do from here. Any advice/tips would be appreciated
I'm working on a problem to which I have the answer to, but I can't seem to figure out how I get there.
Payments of 4000 each due in four, eight and twelve months respectively are to be
settled by five equal payments due today, three months from now, six months from now, nine
months from now and twelve months from now. What is the size of the equal payments if
interest is 12.75% and the agreed focal date is today?
Answer: 2351.17
So what I did so far was calculate the present value payments for each of the first three time periods listed in the question.
Present value for four months:
=4000/(1+0.1275/12*4) = 3836.93
Present value for eight months:
=4000/(1+0.1275/12*8) = 3686.636
Present value for twelve months:
=4000(1+0.1275/12*12) = 3547.672
Adding these together gives me:
11071.24
I'm not sure where to go from here however. Dividing that sum by 5 gives me the wrong answer so I'm trying to see what else I can do from here. Any advice/tips would be appreciated
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