A series of 10 annual payments of $900 is equivalent to three equal payments at the end of years 12, 15 and 20 at 18% interest compounded annually. What is the amount of these three payments? $15723 $7144 $1275 $2540 3 4 A = $900/year 6 7 9 10 12 X 15

A series of 10 annual payments of $900 is equivalent to three equal payments at the end of years 12, 15 and 20 at 18% interest compounded annually. What is the amount of these three payments? $15723 $7144 $1275 $2540 3 4 A = $900/year 6 7 9 10 12 X 15

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

USING EXCEL SPREADSHEET FUNCTIONS ONLY

A series of 10 annual payments of $900 is equivalent to three equal payments at the
end of years 12, 15 and 20 at 18% interest compounded annually. What is the
amount of these three payments?
$15723
$7144
$1275
$2540
3
4
A = $900/year
6
7
9
10
12
X
15

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