Ana loaned a certain amount from XYZ Bank. She agrees to pay P5000 at the beginning of each quarter for 6 years with the interest of 10% compounded quarterly. 1. Find the present worth of her debts. 2. How much still remains unpaid just after she made her 4th payment? 3. How much still remains unpaid just before she made her 12th payment?
Ana loaned a certain amount from XYZ Bank. She agrees to pay P5000 at the beginning of each quarter for 6 years with the interest of 10% compounded quarterly. 1. Find the present worth of her debts. 2. How much still remains unpaid just after she made her 4th payment? 3. How much still remains unpaid just before she made her 12th payment?
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
Related questions
Question
use the formula that is applicable.
![Ordinary Annuity
Deferred Annuity
1-(1+0"
(1+0"-1]
1-(1+1)
P= A
F= A
P= A
(1+0
Annuity Due
Perpetuity
[(1+0**1-1
F= A
P=(1+0-*
if there are deferred periods
P= A
+1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F004465c7-3ce3-44b8-8e13-bedc14e45dc0%2F8ac1d6ae-49c5-432e-86ae-7b472b8c4df6%2Fygi66mm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ordinary Annuity
Deferred Annuity
1-(1+0"
(1+0"-1]
1-(1+1)
P= A
F= A
P= A
(1+0
Annuity Due
Perpetuity
[(1+0**1-1
F= A
P=(1+0-*
if there are deferred periods
P= A
+1
Transcribed Image Text:Ana loaned a certain amount from XYZ Bank. She agrees to pay P5000 at the
beginning of each quarter for 6 years with the interest of 10% compounded quarterly.
1. Find the present worth of her debts.
2. How much still remains unpaid just after she made her 4th payment?
3. How much still remains unpaid just before she made her 12th payment?.
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