A Payment Stream Consists of Three Payments: $1000 Today, $1500

question 171

Short Answer

A payment stream consists of three payments: $1000 today, $1500 in 70 days, and $2000 in 210 days. What single payment, 60 days from now, is economically equivalent to the payment stream if money can be invested at a rate of 8.5%?

---

Definitions:

Economic "Busts"

Periods of significant economic decline characterized by reduced levels of activity across the economy, often including increased unemployment and decreased spending.

Unionization

The process by which workers come together to form a union in order to collectively bargain for better wages, working conditions, and other employment terms.

Frame Alignment

A process in social movement theory that involves the alignment of individual and social movement organizations' interpretive frames, making participation in the movement more appealing to potential adherents.

Congruent

In agreement or harmony; often used in mathematics to refer to figures that are identical in shape and size.