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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Question
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Transcribed Image Text:Kate owes P120 000 due in 4 years plus the
accumulated interest from today at 13%
compounded quarterly. She agrees to pay it in
installment:
P30,000 after 2 years;
P40,000 after 3 years
the remaining balance at the end of 4 years
1.How much did Kate owe at the end of 4th year?
2.How much was her final payment?
3.lf the obligation was to be settled by equal
periodic payments with first payment due at the
beginning of the 3rd quarter of the 2nd year. Find
the amount of the equal payments.
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