1. A loan is being handed out in multiple increasing semi-annual releases. The first release is P50,000 and the last transfer to be P90,000 for 10 years. What is the present worth of the loan if money is worth 6%? 2. A machine has an initial cost of P50,000 and has a salvage value of P10,000 after 1O years. Find the book value using the straight-line method.

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
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1. A loan is being handed out in multiple
increasing semi-annual releases. The first
release is P50,000 and the
last transfer to be P90,000 for 10 years. What
is the present worth of the loan if money is
worth 6%?
2. A machine has an initial cost of P50,000
and has a salvage value of P10,000 after 10
years. Find the book
value using the straight-line method.
Transcribed Image Text:1. A loan is being handed out in multiple increasing semi-annual releases. The first release is P50,000 and the last transfer to be P90,000 for 10 years. What is the present worth of the loan if money is worth 6%? 2. A machine has an initial cost of P50,000 and has a salvage value of P10,000 after 10 years. Find the book value using the straight-line method.
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