An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6% compounded quarterly, find: c. the remaining liability just after the 15th payment d. how much of the 15th payment interests, and how much goes to the principal?

An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6% compounded quarterly, find: c. the remaining liability just after the 15th payment d. how much of the 15th payment interests, and how much goes to the principal?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Question

An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6% compounded quarterly, find:

c. the remaining liability just after the 15th payment

d. how much of the 15th payment interests, and how much goes to the principal?

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