Problem Statement: ME Board April 1993
Alexander Michael owes P25,000.00 due in 1 year and P75,000 due in 4 years. He agrees to pay P50,000 today and the balance in 2 years. How much must he pay at the end of two years if money is worth 5% compounded semi-annually?
- A. P38,025.28
- B. P35,021.25
- C. P30,500.55
- D. P39,021.28
Alexander Michael must pay P39,021.28 at the end of two years.
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