A businessman has to settle a debt of 4 equal semi-annual payments of ₱50,000 at 9% rate of interest compounded semi-annually. However, he was not able to do so. Instead, he negotiated with the bank to settle it into 8 quarterly payments at the same 9% interest rate but compounded quarterly. How much should the new payments be?

A businessman has to settle a debt of 4 equal semi-annual payments of ₱50,000 at 9% rate of interest compounded semi-annually. However, he was not able to do so. Instead, he negotiated with the bank to settle it into 8 quarterly payments at the same 9% interest rate but compounded quarterly. How much should the new payments be?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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