Calculate the amounts of each payment

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Seth works in the finance department of a large corporation. His company has the following debts to the same creditor:

  • $98,000 due in 2 years; $203,000 due in 4¼ years, and $157,000 due in 6½ years. Seth wants to align these payments with the maturity dates of his company's investments.
  • He proposes to the creditor three payments due 1¾ years, 4½ years, and 5½ years from today.
  • The second payment is to be twice the size of the first payment and the third payment is to be three-quarters the size of the second payment.

Problem 1: If the creditor agrees to an interest rate of 7.25% compounded quarterly, calculate the amounts of each payment.

Reference no: EM132985060

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