Answered: Money borrowed today is to be paid in 7…

Money borrowed today is to be paid in 7 equal payments at the end of each quarter. If the interest is 1% compounded quarterly, how much was initially borrowed if quarterly payment is P 23,758?

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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Money borrowed today is to be paid in 7 equal payments at the end of each quarter. If the interest is 1% compounded quarterly, how much
was initially borrowed if quarterly payment is P 23,758?

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