Answered: 2. A P20,000 loan is to be paid off in…

2. A P20,000 loan is to be paid off in 10 equal annual payments. The semi-annual interest is 8%.How much total interest will be paid up to the midst of the payment period?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 18P

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2. A P20,000 loan is to be paid off in 10 equal annual payments. The semi-annual interest is
8%.How much total interest will be paid up to the midst of the payment period?

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Introduction

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Effective interest rate computation

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Present value annuity factor computation

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Total payment computation

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Interest payment computation

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