Reference no: EM132642664

A P 25 million debt which includes interest is to be paid in three years by four equal end of a quarter payments of P 2.25 million then by two equal end of a semi-annual payments of P3.5 million and a final payment at the end of the period. If the said debt is discounted at a rate of 10% ;

Problem a) What was the amount of the final payment?

Problem b) What was the actual amount of money granted to the debtor?

Problem c) If the debtor wishes to pay all his debt after one year of payments, what was the amount to be paid?