SOLUTION: Payments of $800 and $1100 are due in 30 days and 210 days, respectively. If money can be invested at 8.75%, what single payment 90 days from now is equivalent to that payment stre

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Question 1015957: Payments of $800 and $1100 are due in 30 days and 210 days, respectively. If money can be invested at 8.75%, what single payment 90 days from now is equivalent to that payment stream? (Do not round your intermediate calculations. Round your answer to the nearest cent.)
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Payments of $800 and $1100 are due in 30 days and 210 days, respectively. If money can be invested at 8.75%, what single payment 90 days from now is equivalent to that payment stream? (Do not round your intermediate calculations. Round your answer to the nearest cent.)
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800*0.0875*(30/365) = $5.75
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1100*0.0875(210/365) = $55.38
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Sincle Payment::
I = P*r*t
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(5.75+55.38) = P*0.0875*(90/365)
61.13 = P*0.02158
P = $2833.33
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Cheers,
Stan H.
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