To pay for his debt at 12% compounded quarterly, Ruben committed for 8 quarterly payments of P28,491.28 each. How much did he borrow? 1. Answer: P200,000 3.
Step-by-step explanation:
Since, interest is compounded semi-annually, the quarterly payments will not get any interest accruals. Interest will be paid only to half-yearly payments as per the problem given. So, Half-yearly payment = 24491.28 * 2 = 48982.56
Answers & Comments
Answer:
P200,000 3
To pay for his debt at 12% compounded quarterly, Ruben committed for 8 quarterly payments of P28,491.28 each. How much did he borrow? 1. Answer: P200,000 3.
Step-by-step explanation:
Since, interest is compounded semi-annually, the quarterly payments will not get any interest accruals. Interest will be paid only to half-yearly payments as per the problem given. So, Half-yearly payment = 24491.28 * 2 = 48982.56
Interest paying term = 8/2 = 4 (semi-annual )
Rate of interest = 12/2 = 6% = 0.06
PV of borrowed money = 48982.56 * [{(1.06)^4} -1] * {(1.06)^(-4)} / 0.06
PV = 169,729.74 Ans.