Answered: Money borrowed today is to be paid in 6…

Money borrowed today is to be paid in 6 equal payments at the end of six quarters. If the interest is 12% compounded quarterly, how much was initially borrowed if the quarterly payment is P 2000.00?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 7P

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Money borrowed today is to be paid in 6 equal payments at the end of six quarters. If the interest is 12% compounded quarterly, how much was initially borrowed if the quarterly payment is P 2000.00?

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