A man borrowed an amount of P684.255 to bank that offers an interest rate of 8.816% compounded continuously and has a maturity date of 9 years. He plans to pay the loan at an amount of P51.875 at the end of 3 years, and P41,630 at the end of 6 years. Effect interest rate,%? Future worth of the principal amount after 9 years? How much must he pay at the end of 9 years?
A man borrowed an amount of P684.255 to bank that offers an interest rate of 8.816% compounded continuously and has a maturity date of 9 years. He plans to pay the loan at an amount of P51.875 at the end of 3 years, and P41,630 at the end of 6 years. Effect interest rate,%? Future worth of the principal amount after 9 years? How much must he pay at the end of 9 years?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A man borrowed an amount of P684.255 to bank that offers an interest rate of 8.816% compounded continuously and has a maturity date of 9 years. He plans to pay the loan at an amount of P51.875 at the end of 3 years, and P41,630 at the end of 6 years.
Effect interest rate,%?
Future worth of the principal amount after 9 years?
How much must he pay at the end of 9 years?
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