Debts of $2800

question 84

Essay

Debts of $2800.00 due three months from now and $4600.00 due twenty-one months from now are to be settled by two equal payments due in three months and nine months from now respectively. Determine the size of the equal replacement payments if interest is 5.5% p.a. compounded quarterly.

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Definitions:

Budget Reports

Budget Reports compare the actual financial operations against the planned or budgeted figures to help in financial planning and control.

Monthly

Pertaining to or calculated on the basis of one month.

Master Budget

A comprehensive financial planning document that consolidates all of a business's budgets and plans for the future, including sales, production, and financial budgets.

Budgetary Control

The use of budgets to control operations.