The First Two of the Following Three Payments Were Not

question 252

Short Answer

The first two of the following three payments were not made as scheduled. $1,200 was due seven months ago, $900 was due two months ago, and $1,500 is due in one month. The three payments are to be replaced by a single equivalent payment due three months from now. What should the payment be if money is worth 9.9%? Use three months from now as the focal date.

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Definitions:

Workplace Safety

Practices and policies implemented to ensure the physical and emotional well-being of employees in their working environment.

ERISA

The Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry.

Fiduciary Responsibility

The obligation of one party to act in the best interest of another within a relationship of trust, such as that between a trustee and the beneficiaries.

Plan Participants

Individuals who are enrolled and covered under a specific benefits plan, often related to retirement or health insurance.