A loan was to be amortized by a 5 end-of-year payments forming an ascending arithmetic progression. The initial payment was to be P10,000 and the difference between successive payment was to be P1,000. If the loan is to be paid in a single payment after 3 years what should the single payment be? The interest of the loan is 10% pa. Show your cash flow diagram.

A loan was to be amortized by a 5 end-of-year payments forming an ascending arithmetic progression. The initial payment was to be P10,000 and the difference between successive payment was to be P1,000. If the loan is to be paid in a single payment after 3 years what should the single payment be? The interest of the loan is 10% pa. Show your cash flow diagram.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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