A P2,000,000 loan was originally made at 8% simple interest for 4 years. At the end of this period, the load was extended for three years without the interest being paid, but the new interest rate was made 10% compounded semi-annually. How much should the borrower pay at the end of 7 years?
A P2,000,000 loan was originally made at 8% simple interest for 4 years. At the end of this period, the load was extended for three years without the interest being paid, but the new interest rate was made 10% compounded semi-annually. How much should the borrower pay at the end of 7 years?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A P2,000,000 loan was originally made at 8% simple interest for 4 years. At the end of this period, the load was extended for three years without the interest being paid, but the new interest rate was made 10% compounded semi-annually. How much should the borrower pay at the end of 7 years?
a. P3,537,852.49
b. P3,427,648.54
c. P2,814,200.84
d. P2,640,000.00
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