An engineering student borrowed an amount of P 25,000 to be paid in 1 year and an amount of P 75,000 to be paid in 4 years. He agrees to pay P 50,000 now and the remaining balance in 4 years. How much must he pay at the end of 4 years if the money is worth 5% compounded annually?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
An engineering student borrowed an amount of P 25,000 to be paid in 1 year and an amount of P 75,000 to be paid in 4 years. He agrees to pay P 50,000 now and the remaining balance in 4 years. How much must he pay at the end of 4 years if the money is worth 5% compounded annually?
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