Solution: How much was initially borrowed if quarterly payment is P2,000.00?

Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is 12% compounded quarterly, how much was initially borrowed if quarterly payment is P2,000.00?

How much was initially borrowed if quarterly payment is P2,000.00?

Problem Statement: ECE Board April 1998

Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is 12% compounded quarterly, how much was initially borrowed if quarterly payment is P2,000.00?

  • A. P10,834.38
  • B. P10,278.12
  • C. P10,450.00
  • D. P10,672.90

Problem Answer:

The initially borrowed amount is P10,834.38.

Solution:

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