Three Payments Are Scheduled as Follows: $1,200 Is Due Today

question 173

Short Answer

Three payments are scheduled as follows: $1,200 is due today, $900 is due in five months, and $1,500 is due in eight months. The three payments are to be replaced by a single equivalent payment due ten months from now. What should the payment be if money is worth 5.9%? Use ten months from now as the focal date.

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Definitions:

ISD Model

Instructional Systems Design (ISD) Model refers to a systematic process used to develop educational and training programs in a consistent and reliable fashion.

Identification

The process of recognizing or establishing the identity of a person or thing.

Performance Management

A continuous process of planning, monitoring, and reviewing an employee's work objectives and overall contribution to the organization.

Development Needs

The requirements an individual or organization has to improve competencies, skills, and abilities in order to achieve better performance or growth.