For 4-6, refer to the given cash flow diagram to determine the amount of payment that each of Kat, Perlyn and Regine has to make regularly as stipulated below. Rhea lent P 100, 000 today each to Perlyn, Kat and Regine under the following terms. (4) Kat agreed to repay this by 10 monthly payments of Q for a year but at 6% interest compounded semiannually. One of them paid more interest in total. (5) Perlyn promised to make 8 payments of P (principal plus interest) every two months (bi-monthly) for one and a half year with the first payment to be made 2 months from now. Assume that money is worth 7.5% payable semiannually. (6) Regine is determined to settle this loan with 6 quarterly payments of R at 9% interest convertible semiannually. 1/20 P 2/20 3/20 R P R P Q 4/20 5/20 6/20 7/20 R P R P 10/20 11/20 12/20 1/20 ... R P R P 4/20 5/20 6/20 7/20
For 4-6, refer to the given cash flow diagram to determine the amount of payment that each of Kat, Perlyn and Regine has to make regularly as stipulated below. Rhea lent P 100, 000 today each to Perlyn, Kat and Regine under the following terms. (4) Kat agreed to repay this by 10 monthly payments of Q for a year but at 6% interest compounded semiannually. One of them paid more interest in total. (5) Perlyn promised to make 8 payments of P (principal plus interest) every two months (bi-monthly) for one and a half year with the first payment to be made 2 months from now. Assume that money is worth 7.5% payable semiannually. (6) Regine is determined to settle this loan with 6 quarterly payments of R at 9% interest convertible semiannually. 1/20 P 2/20 3/20 R P R P Q 4/20 5/20 6/20 7/20 R P R P 10/20 11/20 12/20 1/20 ... R P R P 4/20 5/20 6/20 7/20
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 2STP
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Determine the Q, P and R. Show the solution also
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