urt borrowed from a bank and wants to start paying P50,000 annually at the end of the 4th year. If it requires 5 annual payments for the borrowed money to be paid off and money is 12% compounded semi-annually, how much did he borrow?

urt borrowed from a bank and wants to start paying P50,000 annually at the end of the 4th year. If it requires 5 annual payments for the borrowed money to be paid off and money is 12% compounded semi-annually, how much did he borrow?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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1. Deferred Annuity and Annuity Due

Kurt borrowed from a bank and wants to start paying P50,000 annually at the end of the 4th year. If it requires 5 annual payments for the borrowed money to be paid off and money is 12% compounded semi-annually, how much did he borrow?

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