500 due in one year plus interest at 6 compounded


Jungle Jim owes three debts:

$500 due in one year plus interest at 6% compounded semi-annually, $2000 due in two years (Interest is not given for this which means $2000 is a maturity value), $1000 due in three years plus interest at 5% compunded monthly.

He wishes to discharge these debts by paying $500 now and two equal but unknown payments in one and two years respectively. Find the size of the equal payments if money is, at present, worth 12% compounded quarterly. Use a focal date of 2 years.

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Financial Management: 500 due in one year plus interest at 6 compounded
Reference No:- TGS01390711

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