person owes a credit institution $20,000 that must be paid in 3 years with interest at 12% effective and $50,000 that must be paid in 6 years with interest at 10% quarterly. Due to a problem, the person cannot pay and contains with the institution, he will pay in two equal amounts at the end of 2 and 5 years with a yield of 6% convertible semi-annually. How much should this payment be?

person owes a credit institution $20,000 that must be paid in 3 years with interest at 12% effective and $50,000 that must be paid in 6 years with interest at 10% quarterly. Due to a problem, the person cannot pay and contains with the institution, he will pay in two equal amounts at the end of 2 and 5 years with a yield of 6% convertible semi-annually. How much should this payment be?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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