Answered: 1. Mr. Lopez borrows P600,000 at 12%…

1. Mr. Lopez borrows P600,000 at 12% compounded annually, agreeing to repay the loan in 15 equal payments. How much of the original principal is still unpaid after he has made the eighth payment?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Show your complete solution and show what is given. Your final answer should be in 4 decimal places.

1. Mr. Lopez borrows P600,000 at 12% compounded annually, agreeing to repay the loan
in 15 equal payments. How much of the original principal is still unpaid after he has made
the eighth payment?

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