A Promissory Note Will Pay P30,000 At A 10-year Maturity From Now. Ho…

A promissory note will pay P30,000 at a 10-year maturity from now. How much should you be willing to pay for the note now if money is worth 9% compounded continuously? Round your final answer to the nearest whole number.​

Answer:

Divide your interest rate by the number of payments you’ll make that year. …

Multiply that number by your remaining loan balance to find out how much you’ll pay in interest that month. …

Subtract that interest from your fixed monthly payment to see how much in principal you will pay in the first month.

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