A friend wants to borrow money from you. He states that he will pay you $2,800 every 6 months for 10 years with the first payment exactly 6 years and 6 months from today. The interest rate is an APR of 5.1 percent with semiannual compounding. What is the value of the payments today?

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter1: Functions
Section1.1: Functions Given By Formulas
Problem 2TU: What is your monthly payment if you borrow 5000 at a monthly rate of 0.61 and pay it off in 5 years?
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A friend wants to borrow money from you. He states that he
will pay you $2,800 every 6 months for 10 years with the first
payment exactly 6 years and 6 months from today. The
interest rate is an APR of 5.1 percent with semiannual
compounding. What is the value of the payments today?
Transcribed Image Text:A friend wants to borrow money from you. He states that he will pay you $2,800 every 6 months for 10 years with the first payment exactly 6 years and 6 months from today. The interest rate is an APR of 5.1 percent with semiannual compounding. What is the value of the payments today?
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