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Essentials Of Investments
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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A present obligation amounting to ₱150,000 is to be repaid for 4 years at a rate of 12% per year. The borrower has three options to repay the money, what would you recommend?  a.  Pay the interest and principal in one payment at the end of the period.  b.  Pay interest due to at the end of each period and the principal at the end of the 4th year.  c.  Pay 50% of the principal at the end of the first year and 50% at the end of the 4th year. The interest will be paid at each end of the year
PROBLEM 3. A present obligation amounting to P150,000 is to be repaid for 4 years at a rate of 12% per year. The borrower has three options to repay the money, what would you recommend? a. Pay the interest and principal in one payment at the end of the period. b. Pay interest due to at the end of each period and the principal at the end of the 4th year. c. Pay 50% of the principal at the end of the first year and 50% at the end of the 4th year. The interest will be paid at each end of the year
Transcribed Image Text:PROBLEM 3. A present obligation amounting to P150,000 is to be repaid for 4 years at a rate of 12% per year. The borrower has three options to repay the money, what would you recommend? a. Pay the interest and principal in one payment at the end of the period. b. Pay interest due to at the end of each period and the principal at the end of the 4th year. c. Pay 50% of the principal at the end of the first year and 50% at the end of the 4th year. The interest will be paid at each end of the year
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