Jorge Is Unable to Make a $4,500 Payment Due Today

question 147

Short Answer

Jorge is unable to make a $4,500 payment due today. He proposes to settle the obligation by making three equal payments-one today, another in four months, and a third in nine months. What must each payment be to make the proposed payment stream equivalent to the scheduled payment if money can earn 7.2% compounded monthly?

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Definitions:

Implement Policies

The process of putting into action or enforcing strategies, laws, or guidelines.

Political Party

An organized group of people with similar political aims and opinions, that seeks to influence public policy by getting its candidates elected to public office.

Win Elections

The aim and process political candidates and parties undergo to gain office by receiving a majority or plurality of votes in an election.

Official Power

The legal authority vested in a person holding a governmental office or position to make decisions, enact policies, or command resources.