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2. What equal payments at the end of 2 years and 4 years will equitably replace the following obligations assuming that the settlement rate is 13% effective? a. P10,800 due at the end of 6 years; b. P20,000 due at the end of 8 years with interest at 18% converted semi-annually

2. What equal payments at the end of 2 years and 4 years will equitably replace the following obligations assuming that the settlement rate is 13% effective? a. P10,800 due at the end of 6 years; b. P20,000 due at the end of 8 years with interest at 18% converted semi-annually

Essentials Of Investments
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
Problem 1PS
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Answer each of the following problems by identifying the given information, required unknown, formula/s to be used. Compute for unknown then label your final answer properly. Draw the diagram for each problem indicating the comparison date. 2. What equal payments at the end of 2 years and 4 years will equitably replace the following obligations assuming that the settlement rate is 13% effective? a. P10,800 due at the end of 6 years; b. P20,000 due at the end of 8 years with interest at 18% converted semi-annually
Transcribed Image Text:Answer each of the following problems by identifying the given information, required unknown, formula/s to be used. Compute for unknown then label your final answer properly. Draw the diagram for each problem indicating the comparison date. 2. What equal payments at the end of 2 years and 4 years will equitably replace the following obligations assuming that the settlement rate is 13% effective? a. P10,800 due at the end of 6 years; b. P20,000 due at the end of 8 years with interest at 18% converted semi-annually
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