Jose borrows P5000 from a lending company for 5 years at 15%. At the end of the 5ft year, he renews the loan for the amount due and another P10,000 more for 3 years at 12%. What is the lump sum due? (You are expected to draw the Cash Flow Diagram in the solution).

Jose borrows P5000 from a lending company for 5 years at 15%. At the end of the 5ft year, he renews the loan for the amount due and another P10,000 more for 3 years at 12%. What is the lump sum due? (You are expected to draw the Cash Flow Diagram in the solution).

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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Jose borrows P5000 from a lending company for 5 years at 15%. At the end of the 5ft year, he renews the loan for
the amount due and another P10,000 more for 3 years at 12%. What is the lump sum due? (You are expected to
draw the Cash Flow Diagram in the solution).
Follow this solution format:
Given:
Required:
Solution:

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