A debt of P100,000 is to be discharged by ten semi-annual payments, the first to be made 6 months after the loan is given. The debt will be discharged by 5 equal payments each P10,000 and by 5 other equal
A debt of P100,000 is to be discharged by ten semi-annual payments, the first to be made 6 months after the loan is given. The debt will be discharged by 5 equal payments each P10,000 and by 5 other equal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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. A debt of P100,000 is to be discharged by ten semi-annual payments, the first to be made
6 months after the loan is given. The debt will be discharged by 5 equal payments each
P10,000 and by 5 other equal payments of such amount that the final payment will
liquidate the debt. If interest is 12% compounded semi-annually, what is the amount of
the last 5 payments? Construct an amortization schedule.
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