Math Problem Solver

USE THIS CASE TO ANSWER THE FOLLOWING QUESTIONS.

Problem:

Mr. Antonio Jose owes the following:

a) P6,500 due at the end of 4 years with accumulated interest from today at 8% effective rate

b) P8,500 due at the end of 1 year

c) P2,300 payable in 6 years at 12% m=2

d) P2,500 payable in 8 years at 12% m=2

e) P8,000 payable in 10 years at 8% at effective rate

Mr. Jose agrees to settle those obligations by paying P5,000 at the end of 3rd year, P3,000 at the end of 5th year, and two equal payments at the end of the 9th and 10th year.

Money is worth 12% m=12

*The focal date is set at the end of the 10th year.

*The focal date is set at the end of the 10th year.

1. What is the value of obligation "a" at year 10?

2. What is the value of obligation "b" at year 1?

3. What is the value of obligation "c" at year 10?

4. What is the value of obligation "e" at year 10?

5. What is the total value of all obligations at year 10?

6. What equal amount at the 9th and 10th year will equitably settle his loans? (hint: the value of "X")