+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, need steps
+118659 You would use the compound interest formula
Find the fv of 2000 in 7 yrs time.
Add
The future value of 2000 in 3 years time.
NOW you have the future value of your loan.
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The other side of the equation is the fv of 2000 after 5 years plus X.
SOLVE THE EQUATION :))
Now you try to do it. :)
