A P485,000 loan was originally made at a rate of 3% compounded semiannually for 1...
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A P485,000 loan was originally made at a rate of 3% compounded semiannually for 1 year. At the end of this period, the loan was extended for 2 years and 8 months, with a new interest rate of 4% compounded continuously, using simple interest for anything less than a year period. a. Find the final amount. (15 pts.) b. Create the cash flow with the type of interest being labelled. (15 pts.) c. Briefly explain the cash flow diagram. (5 pts.)
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