P = ? 2.000.000 6 8.000.000 12 6.000.000 14

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You take out a loan for USD 800,000 for 5 years at an interest rate of 1.5% per quarter.  The bank proposes an amortization system with equal quarterly principal payments and interest on balances. The exchange rate today COP/USD is 4,500 and the expected devaluation is 6% per year.   At the end of year 2, you decide to make an extra payment of COP 200 Million.

Draw cash flow, example figure 1

P=?
2.000.000
6
8.000.000
12
6.000.000
14
Transcribed Image Text:P=? 2.000.000 6 8.000.000 12 6.000.000 14
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