A loan of Php 50,000 due 5 years from now and Php 50,000 due 10 years from

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A loan of Php 50,000 due 5 years from now and Php 50,000 due 10 years from now is to be repaid by a payment of Php 20,000 in 2 years, a payment of Php 40,000 in 4 years and a final payment at the end of 7 years.

If the interest rate is 5% compounded annually, how much is the final payment?

Related Book For answer-question

Concepts In Federal Taxation

ISBN: 9780324379556

19th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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Posted Date: Apr 11, 2023 03:12 AM

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A loan of Php 50,000 due 5 years from now and Php 50,000 due 10 years from

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SOLUTION To solve the problem we need to find the present value of the two loans which will be equal to the sum of the present value of each loan PV PV5year loan PV10year loan Using the formula for th... View the full answer

Concepts In Federal Taxation

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