Homework answers / question archive / Payments of 300, 500 and 700 are made at the end of years five, six, and eight, respectively

Payments of 300, 500 and 700 are made at the end of years five, six, and eight, respectively

Finance

Share With

Payments of 300, 500 and 700 are made at the end of years five, six, and eight, respectively. Interest is accumulated at an annual effective rate of 4%. You are to find the point in time at which a single payment of $1,500 is equivalent to the above series of payments. You are given: (1)X is the point in time calculated by the method of equated time. (ii) Y is the exact point in time. Calculate X+Y.