A business loan worth Php 1,000,000 is to be repaid quarterly in 2 years . The interest rate is 10% converted quarterly. a.) How much is the outstanding balance after 1 year? b.) How much are the principal repayment and interest component of the 5th payment?
A business loan worth Php 1,000,000 is to be repaid quarterly in 2 years . The interest rate is 10% converted quarterly. a.) How much is the outstanding balance after 1 year? b.) How much are the principal repayment and interest component of the 5th payment?
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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A business loan worth Php 1,000,000 is to be repaid quarterly in 2 years . The interest rate is 10% converted quarterly.
a.) How much is the outstanding balance after 1 year?
b.) How much are the principal repayment and interest component of the 5th payment?
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