A man borrowed an amount of P150,600 to bank that offers an interest rate of 5.36% compounded continuously andhas a maturity date of 6 years. He plans to pay the loan at an amount of P15,800 at the end of 2 years, and P10,450 atthe end of 3 years.1. How much must he pay at the end of 6 years?2. If instead of paying an amount at the end of 2nd and 3rd year, he decided to pay by a single lump sum allthe amount including the future liabilities at the end of 5 years, how much is the lump sum?

Loan is an amount of money that is borrowed and is expected to be repaid in the future with…

Answered: A man borrowed an amount of P150,600 to…

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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Similar questions

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Gunther has to pay a loan he took out after a term of 5 years. If the principal amount is at $215 000 and the total amount he has to pay is $275 000, what was the interest rate of his loan (if compounded quarterly)?
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