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jmma585 · Nov 10, 2010, 12:48 AM

Angel owes his creditor a) P 1,000 due without interest at the end of 10 years, and b)
P 3,000 due at the end of 4 years with accumulated interest from today at 4% compounded annually. Angel will discharge her obligations by two equal payments at the ends of the 3rd and 6th years. If the creditor states that the money is worth 6% compounded semiannually, find the new payments.

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Beyonce borrowed P 2000 from Mariah on June 1, 1975, and P 500 on June 1, 1977, agreeing that money is worth 5 % compounded annually. Beyonce paid P 500 on June 1, 1978, P 400 on June 1, 1979, and P 700 on June 1, 1980. What additional sum should Beyonce pay on June 1, 1983, to discharge all remaining liability?
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jmma585 · Nov 10, 2010, 12:58 AM

If money is worth 5 % compounded quarterly. What single payment at the end of 4 years will equitably replace the following set of obligations:
a. P 3,000 due at the end of 2 years.
b. P 4,000 due at the end of 3 years with 71/2% simple interest.
c. P 1,500 due at the end of 6 years with interest at 4 % converted semiannually.
d. P 2,800 due at the end of 8 years with interest at 3 % compounded quarterly.
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