An original loan of P200,000 was made at 10% simple interest per year for 4 years. At the end of this time, no interest had been paid and the loan was extended for 6 more years at a new interest rate of 12% per year compounded monthly. What is the total amount owed on the 10th year if no intermediate payments are made?
An original loan of P200,000 was made at 10% simple interest per year for 4 years. At the end of this time, no interest had been paid and the loan was extended for 6 more years at a new interest rate of 12% per year compounded monthly. What is the total amount owed on the 10th year if no intermediate payments are made?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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