Three Debt Payments, the First in the Amount of $1600

question 59

Multiple Choice

Three debt payments, the first in the amount of $1600.00 due today, the second in the amount of $7200.00 due in 15 months and the third in the amount of $5000 due in 24 months, are to be settled by two equal payments nine months from now and a final payment in 21 months. Determine the size of the equal payments if the money is worth 12.12% p.a. compounded monthly.

• A) $6900.00
• B) $6415.26
• C) $6801.60
• D) $12 830.51
• E) $13 800.00