Wednesday, August 10, 2011

Can anyone help me with a Present Value exercise?

Bruno has just come into some money and whises to pay off two loans. For the first loan, he owes $3000 due in 6 months at 8% (annual) compounding quarterly. For the second loan, he owes $10000 due in 4 years at 5% (annual) interest, compounding semi-annually. How much will it cost him to pay them both off right now ?

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