2. A loan is being repaid with 20 annual payments of P1,000 at the end of each year. Atter the tenth payment, the borrower wishes to pay the balance with 10 semi-annual payments of X paid at the end of each half-year. If the nominal rate of interest convertible semiannually is 10%, solve for X.
2. A loan is being repaid with 20 annual payments of P1,000 at the end of each year. Atter the tenth payment, the borrower wishes to pay the balance with 10 semi-annual payments of X paid at the end of each half-year. If the nominal rate of interest convertible semiannually is 10%, solve for X.
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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2 only
![1.
A loan is being repaid with 20 payments of 1500 at the end of each year. Interest
is calculated at an annual effective rate of 5% for the first 10 years and 4% thereafter.
Find the OLB immediately after five payments have been made by both the prospective
and the retrospective method.
2.
A loan is being repaid with 20 annual payments of P1,000 at the end of each year.
Atter the tenth payment, the borrower wishes to pay the balance with 10 semi-annual
payments of X paid at the end of each half-year. If the nominal rate of interest convertible
semiannually is 10%, solve for X.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F780d3ef0-6e9b-497d-9e33-c62f4662a3e8%2Ff76585d1-2f85-4f90-8c6f-be6760c6ba62%2F7o2wj3s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1.
A loan is being repaid with 20 payments of 1500 at the end of each year. Interest
is calculated at an annual effective rate of 5% for the first 10 years and 4% thereafter.
Find the OLB immediately after five payments have been made by both the prospective
and the retrospective method.
2.
A loan is being repaid with 20 annual payments of P1,000 at the end of each year.
Atter the tenth payment, the borrower wishes to pay the balance with 10 semi-annual
payments of X paid at the end of each half-year. If the nominal rate of interest convertible
semiannually is 10%, solve for X.
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