Instructions: Solve the following problems using the formula above.AB PC Supplies obtains a P5M bank loan at 8% interest compounded semi-annually. The companyrepays the loan by paying P400, 000 every 6 months. What is the outstanding principal after the 10thpayment?

solution interest rate =8% compounded semiannually semiannual interest rate = 8/2…

Answered: Instructions: Solve the following…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 20P

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Instructions: Solve the following problems using the formula above. AB PC Supplies obtains a P5M bank loan at 8% interest compounded semi-annually. The company repays the loan by paying P400, 000 every 6 months. What is the outstanding principal after the 10th payment?