Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Question
Joseph borrowed an amount of P512,390 and promise to pay every year for 5 years. He paid a fixed amount at the end of first year and the succeeding payments are P980 more than the previous payment. If the interest rate is 11.622% compounded quarterly, determine the following:
1.Interest rate per month,%?
2.Amount paid at the end of 3 years.
3.Amount to be paid at the end of 5 years, if he failed to pay the amount at the end of 3rd and 4th year.
4 Amount paid at the end of 3 years.
5.Amount to be paid at the end of 5 years, if he failed to pay the amount at the end of 3rd and 4th year.
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