1. A debt of P15,000 now will be paid in the following schedule: a. P4,000 at the end of three months b. P5,000 at the end of twelve months c. P3,000 at the end of fifteen months d. Final payment at the end of twenty-one months If the rate of interest is 18% compounded quarterly, determine the amount of the final payment.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 26P
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Please construct also a cash flow diagram thank you

1. A debt of P15,000 now will be paid in the following schedule:
a. P4,000 at the end of three months
b. P5,000 at the end of twelve months
c. P3,000 at the end of fifteen months
d. Final payment at the end of twenty-one months
If the rate of interest is 18% compounded quarterly, determine the amount of the final
рayment.
Transcribed Image Text:1. A debt of P15,000 now will be paid in the following schedule: a. P4,000 at the end of three months b. P5,000 at the end of twelve months c. P3,000 at the end of fifteen months d. Final payment at the end of twenty-one months If the rate of interest is 18% compounded quarterly, determine the amount of the final рayment.
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