Answered: A loan of Php 50,000 due 5 years from…

A loan of Php 50,000 due 5 years from now and Php 50,000 due 10 years from now is to be repaid by a payment of Php 20,000 in 2 years, a payment o

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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A loan of Php 50,000 due 5 years from now and Php 50,000 due 10 years from now is to be repaid by a payment of Php 20,000 in 2 years, a payment of Php 40,000 in 4 years and a final payment at the end of 7 years. If the interest rate is 5% compounded annually, how much is the final payment?

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