. How much must a man place in a fund at the end of each month in order to have P12,500 at the end of 4 years, if money is worth 7% compound monthly? How much is the value of the fund on the 10th payment? O A. 2,085.89 B. 1,848.69 O c. 2,324.46 O D. 2,564.43

. How much must a man place in a fund at the end of each month in order to have P12,500 at the end of 4 years, if money is worth 7% compound monthly? How much is the value of the fund on the 10th payment? O A. 2,085.89 B. 1,848.69 O c. 2,324.46 O D. 2,564.43

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

. How much must a man place in a fund at the end of each month in order to have P12,500 at
the end of 4 years, if money is worth 7% compound monthly? How much is the value of the
fund on the 10th payment?
O A. 2,085.89
O B. 1,848.69
O c. 2,324.46
D. 2,564.43

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