A company is considering to start a new product line which requires the installation of new machines and equipment. For this purpose, company wants to borrow money by issuing bonds of Php 10,000 for 12-year period. The interest on these bonds is to be paid at a rate of 8% per year. Compute the amount of interest to be paid to bondholders over 12-year period:  if the simple interest is charged. if the compounded interest is charged and the interest is compounded: (1), annually, (ii), semi-annually. (ii). quarterly (iv). Monthly

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company is considering to start a new product line which requires the installation of new machines and equipment. For this purpose, company wants to borrow money by issuing bonds of Php 10,000 for 12-year period. The interest on these bonds is to be paid at a rate of 8% per year. Compute the amount of interest to be paid to bondholders over 12-year period: 

if the simple interest is charged.
if the compounded interest is charged and the interest is compounded:
(1), annually,
(ii), semi-annually.
(ii). quarterly

(iv). Monthly

 

Kindly answer asap please

 

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