A debt of ₱75,000 was paid for as follows: ₱15,000 at the end of 18 months, ₱25000 at the end of 24 months, ₱30,000 at the end of 36 months, and a final payment of M at the end of 48 months. The rate of interest was 2% compounded semi-annually.a. Pick a focal date and draw a detailed cash-flow diagram. It is recommended to draw it as big as the width of a letter-sized (whole sheet) paper. b. Declare the focal date.c. Write the equation of value (a) using the symbolic factors, and (b) as a mathematical form (expression).
A debt of ₱75,000 was paid for as follows: ₱15,000 at the end of 18 months, ₱25000 at the end of 24 months, ₱30,000 at the end of 36 months, and a final payment of M at the end of 48 months. The rate of interest was 2% compounded semi-annually.a. Pick a focal date and draw a detailed cash-flow diagram. It is recommended to draw it as big as the width of a letter-sized (whole sheet) paper. b. Declare the focal date.c. Write the equation of value (a) using the symbolic factors, and (b) as a mathematical form (expression).
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A debt of ₱75,000 was paid for as follows: ₱15,000 at the end of 18 months, ₱25000 at the end of 24 months, ₱30,000 at the end of 36 months, and a final payment of M at the end of 48 months. The rate of interest was 2% compounded semi-annually.
a. Pick a focal date and draw a detailed cash-flow diagram. It is recommended to draw it as big as the width of a letter-sized (whole sheet) paper.
b. Declare the focal date.
c. Write the equation of value (a) using the symbolic factors, and (b) as a mathematical form (expression).
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