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Bart Just purchased a security for $17,000. This security will pay him $8,500 two years from today, $9,000 6 years from today and another payment of $X 10 years from today. Find the payment (X) that he will receive at year 10 if the interest rate is 6% and Bart will make one more payment of 3,000 4 years from today.

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Answer:

$,9789.97

Explanation:

Calculation to Find the payment (X) that he will receive at year 10

Using this formula

Let plug in the formula

Present Value = CF2/(1+r)^2 + CF6/(1+r)^6 + CF10/(1+r)^10 + CF4/(1+r)^4

Let plug in the formula

17,000 = 8,500/1.06^2 + 9,000/1.06^6 + X/1.06^10 - 3,000/1.06^4

Payment (X) = (17,000 - 13,909.61 + 2,376.28)*1.06^10

Payment (X) == $,9789.97

Therefore the payment (X) that he will receive at year 10 will be $,9789.97