owes Pedro the sum of P 10,000 due on Dec.31,1978, and P 6,000. due Dec.31,1980. However, with consent of Pedro, Jose i

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 30P
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Jose owes Pedro the sum of P 10,000 due on Dec.31,1978, and P 6,000. due Dec.31,1980. However, with consent of Pedro, Jose is allowed to discharge the debt by paying P 9,000 on Dec.31,1979, and a final payment, including the accrued interest on Dec.31,1981. If interest is 8% determine the amount of the final payment compounded annually. Show the problem completely and clearly.
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