A owes B the following amounts: P 4,000 due 3 years hence P 5,600 due 4 years hence P 3,800 due 5 years hence The agreed rate of interest is 12% c.m. A has just won a major prize in a lottery and decides to liquidate these debts now. How much should B be willing to accept in full payment ?
A owes B the following amounts: P 4,000 due 3 years hence P 5,600 due 4 years hence P 3,800 due 5 years hence The agreed rate of interest is 12% c.m. A has just won a major prize in a lottery and decides to liquidate these debts now. How much should B be willing to accept in full payment ?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A owes B the following amounts: P 4,000 due 3 years hence P 5,600 due 4
years hence P 3,800 due 5 years hence The agreed rate of interest is 12% c.m. A has just won a major prize in a lottery and decides to liquidate these debts
now. How much should B be willing to accept in full payment ?
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