4. A company owes P 80,000, which includes the interest, to be paid one year from now. To provide for the repayment of this debt, the company deposits P 2,000 at the beginning of the first month, P 4,000 at the beginning of the second month, increasing the deposits in each succeeding month by P 2,000 until the beginning of the eighth month. These amounts earn interest at the rate of 9% compounded monthly. Will the total amount in the fund at the end of 12 months be sufficient to repay the debt? If not, how much more is needed? (Ans. Additional amount= P 28,301.58)
4. A company owes P 80,000, which includes the interest, to be paid one year from now. To provide for the repayment of this debt, the company deposits P 2,000 at the beginning of the first month, P 4,000 at the beginning of the second month, increasing the deposits in each succeeding month by P 2,000 until the beginning of the eighth month. These amounts earn interest at the rate of 9% compounded monthly. Will the total amount in the fund at the end of 12 months be sufficient to repay the debt? If not, how much more is needed? (Ans. Additional amount= P 28,301.58)
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...
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