Two Payments of $5,000 Are Scheduled Six Months and Three

question 16

Short Answer

Two payments of $5,000 are scheduled six months and three years from now. They are to be replaced by a payment of $3,000 in two years, a second payment in 42 months, and a third payment, twice as large as the second, in five years. What should the last two payments be if money is worth 9% compounded semi-annually?

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Definitions:

Anthropologists

Scientists who study human societies, cultures, and their development through observation, analysis, and fieldwork.

Enculturation

The process by which individuals learn and absorb the cultural norms, values, and practices of their society through experience and social interactions.

Individual's Personality

Describes the characteristic patterns of thoughts, emotions, and behaviors that make a person unique, including their attitudes, habits, and traits.

Phonetics

The systematic identification and description of distinctive speech sounds in a language.