document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1193499>Question 1193499</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Julita owes Jose the following amounts:<BR>\n" );
document.write( "a. 55,000 at the end of 4 years,<BR>\n" );
document.write( "b. 48,000 at the end of 5 years, and<BR>\n" );
document.write( "c. 75,000 due in 3 years from today at 9% converted quarterly.<BR>\n" );
document.write( "What single payment at the end of 2 years will settle Julita’s<BR>\n" );
document.write( "obligations if money is worth 15% converted monthly? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #848656 by </B><A HREF=/tutors/aboutme.mpl?userid=ElectricPavlov><B>ElectricPavlov(122)</B></A><img src=\"/images/stars/stars-09.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ElectricPavlov><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=848656\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> **1. Calculate the Present Value of Each Obligation:**\r<BR>\n" );
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document.write( "* **Obligation 1:**<BR>\n" );
document.write( "    * Present Value (PV1) = 55,000 / (1 + 0.15/12)^(4*12) <BR>\n" );
document.write( "    * PV1 = 55,000 / (1.0125)^48 <BR>\n" );
document.write( "    * PV1 ≈ 26,534.62\r<BR>\n" );
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document.write( "* **Obligation 2:**<BR>\n" );
document.write( "    * Present Value (PV2) = 48,000 / (1 + 0.15/12)^(5*12) <BR>\n" );
document.write( "    * PV2 = 48,000 / (1.0125)^60 <BR>\n" );
document.write( "    * PV2 ≈ 19,737.68\r<BR>\n" );
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document.write( "* **Obligation 3:** <BR>\n" );
document.write( "    * Quarterly interest rate for Obligation 3: 0.09 / 4 = 0.0225<BR>\n" );
document.write( "    * PV of Obligation 3 at the end of 3 years: 75,000 / (1 + 0.0225)^(3*4) = 75,000 / (1.0225)^12 <BR>\n" );
document.write( "    * PV of Obligation 3 at the end of 3 years: ≈ 57,096.79<BR>\n" );
document.write( "    * Present Value (PV3) = 57,096.79 / (1 + 0.15/12)^(3*12) <BR>\n" );
document.write( "    * PV3 = 57,096.79 / (1.0125)^36 <BR>\n" );
document.write( "    * PV3 ≈ 35,320.95\r<BR>\n" );
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document.write( "**2. Calculate the Total Present Value of All Obligations**\r<BR>\n" );
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document.write( "* Total Present Value (Total PV) = PV1 + PV2 + PV3 <BR>\n" );
document.write( "* Total PV = 26,534.62 + 19,737.68 + 35,320.95 <BR>\n" );
document.write( "* Total PV ≈ 81,593.25\r<BR>\n" );
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document.write( "**3. Calculate the Single Payment at the End of 2 Years**\r<BR>\n" );
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document.write( "* Single Payment = Total PV * (1 + 0.15/12)^(2*12) <BR>\n" );
document.write( "* Single Payment = 81,593.25 * (1.0125)^24 <BR>\n" );
document.write( "* Single Payment ≈ 120,984.66\r<BR>\n" );
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document.write( "**Therefore, a single payment of approximately 120,984.66 at the end of 2 years will settle Julita's obligations.**<BR>\n" );
document.write( " </SPAN>\n" );
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