draw the cash flow diagram for this problem 14. Mr. Reyes borrows P600.000 at 12% compounded annually.agreeing to repay the loan in 15 equal annual payments. How muchof the original principal is still unpaid after he has made the 8thpayment?Ans. P 402,040

When you take a loan then you have to make periodic regular payments towards the loan. The periodic…

14. Mr. Reyes borrows P600.000 at 12% compounded annually. reeing to repay the loan in 15 equal annual payments. How much the original principal is still unpaid after he has made the 8th Ans. P 402,040

14. Mr. Reyes borrows P600.000 at 12% compounded annually. reeing to repay the loan in 15 equal annual payments. How much the original principal is still unpaid after he has made the 8th Ans. P 402,040

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

draw the cash flow diagram for this problem

14. Mr. Reyes borrows P600.000 at 12% compounded annually.
agreeing to repay the loan in 15 equal annual payments. How much
of the original principal is still unpaid after he has made the 8th
payment?
Ans. P 402,040

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