Essay
An obligation can be settled by making a payment of $7500.00 now and a final payment of $10 000.00 in five years. Alternatively the obligation can be settled by payments of $750.00 at the end of every three months for five years. If interest rate is 10% compounded quarterly, determine the preferred alternative.
Correct Answer:
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PV of 10 000: n = 5(4) = 20; i = 
= 0.02...View Answer
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Correct Answer:
Verified
= 0.02...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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