12. i) Calculate the amount received from a loan that charges interest in advance by 4% and must be repaid by P2000 at the end of three years. ii) If the present value in problem i is of P1778, what is the compound rate of interest in advance applied?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
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12. i) Calculate the amount received from a loan that charges interest in advance by 4% and must be
repaid by P2000 at the end of three years. ii) If the present value in problem i is of P1778, what is the
compound rate of interest in advance applied?
Transcribed Image Text:12. i) Calculate the amount received from a loan that charges interest in advance by 4% and must be repaid by P2000 at the end of three years. ii) If the present value in problem i is of P1778, what is the compound rate of interest in advance applied?
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