A owes P30,000 in 5 months with interest at 7% and another P14000 is due in 11 months with interest at 9%. These two debts are to be replaced with a single payment due in 9 months. Determine the value of the single payment if money is worth 6.5%, using the end of 9 months as the focal date.
A owes P30,000 in 5 months with interest at 7% and another P14000 is due in 11 months with interest at 9%. These two debts are to be replaced with a single payment due in 9 months. Determine the value of the single payment if money is worth 6.5%, using the end of 9 months as the focal date.
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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A owes P30,000 in 5 months with interest at 7% and another P14000 is due in 11 months with interest at 9%. These two debts are to be replaced with a single payment due in 9 months. Determine the value of the single payment if money is worth 6.5%, using the end of 9 months as the focal
date.
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