Compound interest at changing interest rates
A young couple owns a block of land worth $29000. They are offered 20% deposit and 2 equal payments of $15000 at the end of years 2 and 4. If money is worth J2=8% for the first 2 years and J4=12% for the next 2 years, should they accept the offer?
I tried [2*(15000)*(1.04^-4)(1.03^-8)]+(29000*.2) answer comes out to 26043.71 so they should not accept, but i think ive skipped some things and done something wrong, the answer in the back says they shouldnt accept but i think i still messed up somehow. Any help is appreciated :) thanks, teerplid.