Answered: ₱ 35 000 obligation due in 2 years…

₱ 35 000 obligation due in 2 years bears an interest of 12% compounded monthly. If the money is worth 8.5% compounded semi-annually, find the value of his obligation: a. Now

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22PROB

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Question

VALUES OF OBLIGATION
1. A ₱ 35 000 obligation due in 2 years bears an interest of 12% compounded monthly. If the money is worth 8.5% compounded semi-annually, find the value of his obligation:

a. Now

b. at the end of 3 years and 3 months

c. in 6 years

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