SOLUTION: To pay a ₱370,000 loan, Aling Vergie promises to pay ₱42,000 at the end of every 6 months. If money is worth 10% compounded semi- annually, a. how many semi-annual payments

Algebra ->  Finance -> SOLUTION: To pay a ₱370,000 loan, Aling Vergie promises to pay ₱42,000 at the end of every 6 months. If money is worth 10% compounded semi- annually, a. how many semi-annual payments      Log On


   

Question 1194193: To pay a ₱370,000 loan, Aling Vergie promises to pay ₱42,000 at the
end of every 6 months. If money is worth 10% compounded semi-
annually,
a. how many semi-annual payments are to be made?
b. find the outstanding balance after the seventh payment.
c. find the final payment if it is made 6 months after the last full
payment date.
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
my spreadsheet is shown below.



answers to your questions are below:

a. how many semi-annual payments are to be made?
12 semi-annual payments are to be made.

b. find the outstanding balance after the seventh payment.
outstanding balance after the seventh payment is equal to $178,662.80.

c. find the final payment if it is made 6 months after the last full
payment date.
final payment is equal to $37,947.53.

let me know if you have any questions.
theo