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Homework answers / question archive / 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 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

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.)

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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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