document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1193410>Question 1193410</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 1. 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 #848812 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52778)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><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/cgi-bin/show-face.mpl?user=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=848812\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .\r<BR>\n" );
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document.write( "I can not leave this problem and its solution without my notices.\r<BR>\n" );
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document.write( "The problem itself looks very strange to me.\r<BR>\n" );
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document.write( "(1) It systematically repeats \"converted\" instead of \"compounded\", which tells me <BR>\n" );
document.write( "that the author is unfamiliar with standard terminology - so the author is a person who accidentally got lost.\r<BR>\n" );
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document.write( "(2) From the problem, it is unclear, to which money this statement relates \"If money is worth 15% converted monthly\".\r<BR>\n" );
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document.write( "Honestly, my impression is that the condition of the problem is mistakenly mixed\r<BR>\n" );
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document.write( "from two different problems (so the author accidently was got lost again).\r<BR>\n" );
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document.write( "(3) In the solution, calculation for pv_c looks strange to me.\r<BR>\n" );
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document.write( "It uses the formula \r<BR>\n" );
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document.write( "pv_c = 75000/(1+0.093083)^1*(1+0.15/12)^(-12)\r<BR>\n" );
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document.write( "It seems out of logic, since all we need to do in this part is to rewind back one year from 75,000<BR>\n" );
document.write( "with the quarterly compounding effective rate r = 0.09/4,\r<BR>\n" );
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document.write( "so the formula should be\r<BR>\n" );
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document.write( "pv_c = 75000/(1+0.09/4)^4,\r<BR>\n" );
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document.write( "which will produce, definitely, another value.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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