Engr. Dela Cruz secured two loans from Bangko ng Nueva Ecija: one for P 8,000,000 due in 3 years and another for P 15,000,000 due in 6 years, both at an interest rate of 10% per annum compounded semi-annually. The bank has agreed to allow the two loans to be consolidated into one loan payable in 5 years at the same interest rate. What amount will Mr. Makisig be required to pay the bank at the end of 5 years?

Engr. Dela Cruz secured two loans from Bangko ng Nueva Ecija: one for P 8,000,000 due in 3 years and another for P 15,000,000 due in 6 years, both at an interest rate of 10% per annum compounded semi-annually. The bank has agreed to allow the two loans to be consolidated into one loan payable in 5 years at the same interest rate. What amount will Mr. Makisig be required to pay the bank at the end of 5 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 30P

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