Transaction interest rate-what is amount of first payment

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Electric Company is considering the purchase of a hillside ranch for possible use as a windmill farm sometime in the future. The owner of the 500-acre ranch will sell for $3,000 per acre if the company will pay her in two payments - one payment now and another that is twice as large 3 years from now. If the transaction interest rate is 8% per year, what is the amount of the first payment?

Reference no: EM13895832

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Transaction interest rate-what is amount of first payment : Electric Company is considering the purchase of a hillside ranch for possible use as a windmill farm sometime in the future. The owner of the 500-acre ranch will sell for $3,000 per acre if the company will pay her in two payments - one payment now a..

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