Mark borrowed an amount of P8,830 from Brian and after 2 years, he borrowed again an amount of P2,750. He paid P3,600 one year after the last borrow, P2,450 the following year, and P1,800 the next year after. If the money is worth 9.45% compounded semi-quarterly, determine the following: 1. Amount he should pay 7 years after the last borrow to discharge all his debts. 2. Amount he should pay as a single lump sum at the end of 6th year to discharge all his debts.

Mark borrowed an amount of P8,830 from Brian and after 2 years, he borrowed again an amount of P2,750. He paid P3,600 one year after the last borrow, P2,450 the following year, and P1,800 the next year after. If the money is worth 9.45% compounded semi-quarterly, determine the following: 1. Amount he should pay 7 years after the last borrow to discharge all his debts. 2. Amount he should pay as a single lump sum at the end of 6th year to discharge all his debts.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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