A contract calls for semiannual payments of P40,000 for the the next 10 years and an additional payment of P250,000 at the end of that time. Find the equivalent cash value of the contract at 7% compounded semiannually P598,589.00 P752,777.00 O P694,138.00 P444,526.25

A contract calls for semiannual payments of P40,000 for the the next 10 years and an additional payment of P250,000 at the end of that time. Find the equivalent cash value of the contract at 7% compounded semiannually P598,589.00 P752,777.00 O P694,138.00 P444,526.25

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 11P

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Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

A contract calls for semiannual payments of P40,000 for the the next 10 years
and an additional payment of P250,000 at the end of that time. Find the
equivalent cash value of the contract at 7% compounded semiannually
P598,589.00
O P752,777.00
P694,138.00
P444,526.25

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