Drake Corporation takes out a term loan payable in 12 year-end annual installments of P5,000 each. The interest rate is 14 percent. (a) What is the amount of the loan? (b) what is the loan balance at the end of year 2? CHOOSE THE LETTER OF ANSWER A. (a)P27,301.50 and (b) P26,080.63 B. (a)P15,301.50 and (b) P26,080.63 C. (a)P26,301.50 and (b) P26,080.63 D. (a)P25,301.50 and (b) P26,080.63 E. None of the above

Drake Corporation takes out a term loan payable in 12 year-end annual installments of P5,000 each. The interest rate is 14 percent. (a) What is the amount of the loan? (b) what is the loan balance at the end of year 2? CHOOSE THE LETTER OF ANSWER A. (a)P27,301.50 and (b) P26,080.63 B. (a)P15,301.50 and (b) P26,080.63 C. (a)P26,301.50 and (b) P26,080.63 D. (a)P25,301.50 and (b) P26,080.63 E. None of the above

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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