A loan of P500, 000 is to be amortized with quarterly payments for five years at the rate of 8% compounded quarterly. a) amortize the loan with monthly payments instead of quarterly payments and change the interest rate from 8% compounded quarterly to 6% compounded monthly for the remaining year of the loan b) Assuming that all quarterly payments during the first year were made, how much is the new monthly payment?
A loan of P500, 000 is to be amortized with quarterly payments for five years at the rate of 8% compounded quarterly. a) amortize the loan with monthly payments instead of quarterly payments and change the interest rate from 8% compounded quarterly to 6% compounded monthly for the remaining year of the loan b) Assuming that all quarterly payments during the first year were made, how much is the new monthly payment?
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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