Mr. W borrowed P2, 000 from Mr. Y on June 1, 1928 and P500 one June 1, 1930. Mr. W paid P500 on June 1, 1931, P400 on June 1932 and P700 on June 1, 1933. If money is worth 5% compounded annually, what additional payment should Mr. W pay on June 1, 1936 to discharge all remaining liability?
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Answer and draw neatly the necessary cash flow diagrams, and box your final answers.
Mr. W borrowed P2, 000 from Mr. Y on June 1, 1928 and P500 one June 1, 1930. Mr. W paid P500 on June 1, 1931, P400 on June 1932 and P700 on June 1, 1933. If money is worth 5% compounded annually, what additional payment should Mr. W pay on June 1, 1936 to discharge all remaining liability?
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