Payments of $2,600, Due 50 Days Ago, and $3,100, Due

question 214

Short Answer

Payments of $2,600, due 50 days ago, and $3,100, due in 40 days, are to be replaced by $3,000 today and another payment in 30 days. What must the second payment be if the payee is to end up in an equivalent financial position? Money now earns 8.25%. Use 30 days from now as the focal date.

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Definitions:

Subalternate

In logic, a term referring to a proposition that is inferred immediately from another more general proposition.

Proposition

A statement that can either be true or false, expressing a complete thought or judgement.

Contradictory

Refers to statements that cannot both be true at the same time because they express opposite assertions.

Real Estate Deals

Transactions or agreements made in the context of buying, selling, or leasing property.