5. A mortgage of P 90 000 is to be paid by annual payment over a period of 10 years. If the interest rate is 15.8% effective.
a) calculate the annual payment;

b) construct an amortization schedule;

c) find the total payment made;

d) find the total interest paid



6. A project requires an initial outlay of P 100 000. The relevant inflows associated with the project are P 60 000 in year one and P 50 000 in years two and three. The appropriate discount rate for this project is 13%. Compute the net present value. Should the company accept the project?

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