+598 Scheduled payments of $2000 due now and $2000 due in four years are to be replaced by a payment of $2000 due in two years and a second payment due in seven years. Determine the size of the second payment if interest is 10.5% compounded annually and the focal date is seven years from now.
Any help would be great thanks.
The size of 2nd payment due in 7 years should be=$3,426.72
P.S. Sorry, I have been busy with your financial questions. Some of the answers maybe be approximate, because I took a shortcut in some of them. The formulae used are ALL the standard TVM formulae that are in your book. Many of these problems are relatively advanced, so you must be studying some sort of a college business or finance courses. I found some of them to be ambiguous, the way they are stated. So, if you have quibbles, let me know. I think you are a Canadian student!.
