Homework Answers
The five solution equation here is as follows -
X(1+6.5%)^(4-2) + 2X = 6000(1+6.5%)^4
(Here we are equating the future value of all the payments (four years from now) equal to the total debt to be repaid in four years for 6000 $ at 6.5%)
Solving for the above equation gives =
1.134X + 2X = 7718.798
X = 2462.745 $
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