Compute two equal payments

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Reference no: EM131837629

1. Compute the present value of a $2,200 deposit in year 3 and another $1,700 deposit at the end of year 5 if interest rates are 8 percent.

2. To borrow $1,500, you are offered an add-on interest loan at 10 percent. Two loan payments are to be made, one at six months and the other at the end of the year. Compute the two equal payments.

3. Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,200, $1,400, $1,400, and $1,700.

Reference no: EM131837629

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