A loan of $3500 is due in 6 years If money is worth 5% compounded annually, find the equivalent payments that would settle the debt at the times shown below

Finance Dec 02, 2020

A loan of $3500 is due in 6 years If money is worth 5% compounded annually, find the equivalent payments that would settle the debt at the times shown below. (a) now (b) in 2 years (c) in 6 years (d) in 12 years (a) The equivalent loan payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Expert Solution

rate positively .

We have to compute the value at the given time period

Ans a)	now	$ 2,611.75
	3500/(1+5%)^6
	ans =	$ 2,611.75

Ans b)	in 2 year	$ 2,879.46
	3500/(1+5%)^4
	ans =	$ 2,879.46

Ans c)	in 6 year	$ 3,500.00
	3500
	ans =	$ 3,500.00

Ans d)	in 12 year	$ 4,690.33
	3500*(1+5%)^6
	ans =	$ 4,690.33

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