De Lima Enterprise plans to borrow 1,000,000 for eight years at 9% with a bank term loan.The bank requires repayment in a series of equal annul end-of- year installments. 1. What is the annual payment rounded to the nearest peso? 2.How much total interest will De Lima Company pay over the life of the loan?
De Lima Enterprise plans to borrow 1,000,000 for eight years at 9% with a bank term loan.The bank requires repayment in a series of equal annul end-of- year installments. 1. What is the annual payment rounded to the nearest peso? 2.How much total interest will De Lima Company pay over the life of the loan?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 9P
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De Lima Enterprise plans to borrow 1,000,000 for eight years at 9% with a bank term loan.The bank requires repayment in a series of equal annul end-of- year installments.
1. What is the annual payment rounded to the nearest peso?
2.How much total interest will De Lima Company pay over the life of the loan?
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