Emily Fashion Shop owes P24,000 due in 1 year with interest at 18% compounded monthly, and P35.000 due in 6 years with interest at 20% compounded quarterly. If money is worth 22% effective, what single payment in 4 years will settle these obligations?

Emily Fashion Shop owes P24,000 due in 1 year with interest at 18% compounded monthly, and P35.000 due in 6 years with interest at 20% compounded quarterly. If money is worth 22% effective, what single payment in 4 years will settle these obligations?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Emily Fashion Shop owes P24,000 due in 1 year with interest at
18% compounded monthly, and P35.000 due in 6 years with interest
at 20% compounded quarterly. If money is worth 22% effective,
what single payment in 4 years will settle these obligations?

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