A loan of P50k requires quarter payments of P2875 over 10-year period. These payments include both principal and interest. a) what is the nominal interest rate for this loan? b) Determine the amount of unpaid loan principal after 6 years.

A loan of P50k requires quarter payments of P2875 over 10-year period. These payments include both principal and interest. a) what is the nominal interest rate for this loan? b) Determine the amount of unpaid loan principal after 6 years.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 18P

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Question

A loan of P50k requires quarter payments of P2875 over 10-year period. These payments include

both principal and interest.

a) what is the nominal interest rate for this loan?

b) Determine the amount of unpaid loan principal after 6 years.

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