A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first payment to be made 6 months after the loan finalization. After the payment was made, the debtor was in a position to settle the entire debt balance by a single payment on that date. If the interest on the loan is 12% compounded semi-annually, what would be the amount of this single payment?
A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first payment to be made 6 months after the loan finalization. After the payment was made, the debtor was in a position to settle the entire debt balance by a single payment on that date. If the interest on the loan is 12% compounded semi-annually, what would be the amount of this single payment?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 26P
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A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first payment to be made 6 months after the loan finalization. After the payment was made, the debtor was in a position to settle the entire debt balance by a single payment on that date. If the interest on the loan is 12% compounded semi-annually, what would be the amount of this single payment?
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