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What is the amount of each payment?

What is the amount of each payment?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A man needs Php12,000 immediately as down payment on a new gadget, suppose that he can borrow this money from his company credit cooperative. He will be required to repay the loan in equal payments, made every six months over the next 8 years. The annual interest rate being charged is 10% compounded continuously. What is the amount of each payment?

A man needs Php12,000 immediately as down payment on a new gadget, suppose that he can borrow this money from his company credit cooperative. He will be required to repay the loan in equal payments, made every six months over the next 8 years. The annual interest rate being charged is 10% compounded continuously. What is the amount of each payment? a) 1,785.54 b) 1,319.33 c) 2,330.34 d) 1,117.27 e) None
Transcribed Image Text:A man needs Php12,000 immediately as down payment on a new gadget, suppose that he can borrow this money from his company credit cooperative. He will be required to repay the loan in equal payments, made every six months over the next 8 years. The annual interest rate being charged is 10% compounded continuously. What is the amount of each payment? a) 1,785.54 b) 1,319.33 c) 2,330.34 d) 1,117.27 e) None
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