Pau’s company borrows Php 500,000 from the local bank to invest in a personal computer for the quality control department on the term that the company will pay back Php 120,000 each year for the next 5 years. The first payment is due on the first loan anniversary. What interest rate the bank is charging if compounding is annual?
Pau’s company borrows Php 500,000 from the local bank to invest in a personal computer for the quality control department on the term that the company will pay back Php 120,000 each year for the next 5 years. The first payment is due on the first loan anniversary. What interest rate the bank is charging if compounding is annual?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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1. Pau’s company borrows Php 500,000 from the local bank to invest in a personal computer for the quality control department on the term that the company will pay back Php 120,000 each year for the next 5 years. The first payment is due on the first loan anniversary. What interest rate the bank is charging if compounding is annual?
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