Rhea lent P 100,000 today each to Perlyn, Kat and Regine under the following terms. (4) Kat agreed to repay this by 10 monthly payments of Q for a year but at 6% interest compounded semiannually. One of them paid more interest in total. (5) Perlyn promised to make 8 payments of P (principal plus interest) every two months (bi-monthly) for one and a half year with the first payment to be made 2 months from now. Assume that money is worth 7.5% payable semiannually. (6) Regine is determined to settle this loan with 6 quarterly payments of R at 9% interest convertible semiannually.
Rhea lent P 100,000 today each to Perlyn, Kat and Regine under the following terms. (4) Kat agreed to repay this by 10 monthly payments of Q for a year but at 6% interest compounded semiannually. One of them paid more interest in total. (5) Perlyn promised to make 8 payments of P (principal plus interest) every two months (bi-monthly) for one and a half year with the first payment to be made 2 months from now. Assume that money is worth 7.5% payable semiannually. (6) Regine is determined to settle this loan with 6 quarterly payments of R at 9% interest convertible semiannually.
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
Answer no. 5 only
Determine P.
Transcribed Image Text:Rhea lent P 100,000 today each to Perlyn, Kat and Regine under the following terms.
(4) Kat agreed to repay this by 10 monthly payments of Q for a year but at 6% interest compounded
semiannually. One of them paid more interest in total.
(5) Perlyn promised to make 8 payments of P (principal plus interest) every two months (bi-monthly)
for one and a half year with the first payment to be made 2 months from now. Assume that money
is worth 7.5% payable semiannually.
(6) Regine is determined to settle this loan with 6 quarterly payments of R at 9% interest convertible
semiannually.
P
Q
R
at
Pat
Q
RPO
Р
1/20 2/20 3/20 4/20 5/20 6/20 7/20
Q
R
P
P
Q Q Q
Q
10/20 11/20 12/20 1/20
R
R
P
4/20 5/20
6/20
R
P
*
7/20
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