A man agreed to pay the loan he is borrowing from a bank in six equal year- end payments of P71,477.70. Interest is 18% per annum, compounded annually, and is included in the yearly amount he will be paying the bank. How much money is the man borrowing from the bank?

A man agreed to pay the loan he is borrowing from a bank in six equal year- end payments of P71,477.70. Interest is 18% per annum, compounded annually, and is included in the yearly amount he will be paying the bank. How much money is the man borrowing from the bank?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A man agreed to pay the loan he is
borrowing from a bank in six equal year-
end payments of P71,477.7O. Interest is 18%
per annum, compounded annually, and is
included in the yearly amount he will be
paying the bank. How much money is the
man borrowing from the bank?

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