Melvin availed a loan from a bank that gave him an option to pay Php 14,600 monthly for 2 years. Th- ayment is due 7 months from now. a. What is k (time deferral)? Period/s b. How much is the present value of the loan if the interest rate is 4% converted monthly? Round off E

Melvin availed a loan from a bank that gave him an option to pay Php 14,600 monthly for 2 years. Th- ayment is due 7 months from now. a. What is k (time deferral)? Period/s b. How much is the present value of the loan if the interest rate is 4% converted monthly? Round off E

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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Pls. answer it immediately thanks

Melvin availed a loan from a bank that gave him an option to pay Php 14,600 monthly for 2 years. The
payment is due 7 months from now.
a. What is k (time deferral)?
Period/s
b. How much is the present value of the loan if the interest rate is 4% converted monthly? Round off the
answer to two decimal places.

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