11. A loan of P 200, 000 received today is to be cancelled by making ten equal semi-annual payments starting at the end of two years. How much is the semi-annual payment, if interest is charged at 10% compounded semi-annually?   12. A man wants to have P 500, 000 to pay for the downpayment of a new house. In order to have this money, he sets up a fund earning 12% compounded monthly and deposits P 50, 000 at the end of each month for as long as necessary. When is the earliest time will he have at least P 500, 000 in the fund

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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11. A loan of P 200, 000 received today is to be cancelled by making ten equal semi-annual payments starting at the end of two years. How much is the semi-annual payment, if interest is charged at 10% compounded semi-annually?

 

12. A man wants to have P 500, 000 to pay for the downpayment of a new house. In order to have this money, he sets up a fund earning 12% compounded monthly and deposits P 50, 000 at the end of each month for as long as necessary. When is the earliest time will he have at least P 500, 000 in the fund?

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