You are loaning a car to someone who will pay in an unusual schedule as follows:
He takes home the car today. No payments are required until the end of the fifth month, when he pays $680. Payments of $680 are then due every month until (and including) the end of month 13. After month 13, no payments are required until the end of month 17, when payment of $680 is again due. Payments then decrease by $50 every month until (and including) the end of month 23. The annual interest rate is 6%, compounded monthly.
What is the equivalent present value today of all payments in the propsed schedule?