Ali wishes to replace payments of $1050 due today and $1250 due in 22 months by...

Ali wishes to replace payments of $1050 due today and $1250 due in 22 months by a single equivalent payment 18 months from now. If money is worth 3.8% compounded monthly, what should that payment be?

Interim calculations to 3 decimals, final answer rounded to the nearest cent.

(Total: 9 marks)

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Expert Solution

milcah answered 1 year ago

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