A loan with interest at 10% converted semiannually is to be amortized by equal payments of P119,764.71 at the end of everysix months for nine years. How much is the outstanding principal after the eighth year?Select one:O a. No answerb. P461,493.75O c. P924,791.34d. P386,493.71e. P222,691.75

Interest rate = 10% Semi annual interest rate (r) = 10%/2 = 5% Period = 9 Years Number of payments…

Answered: A loan with interest at 10% converted…

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 with interest at 10% converted semiannually is to be amortized by equal payments of P119,764.71 at the end of every six months for nine years. How much is the outstanding principal after the eighth year? Select one: O a. No answer b. P461,493.75 O c. P924,791.34 d. P386,493.71 e. P222,691.75