On January 1, 2018, Vertigo Inc. gave a loan to its long-time client BIP Co. The loan amounted to P3,000,000 and has a maturity of three years with an interest of 10%. Annual Interest is collectible every January 2 beginning in 2019. The company incurred origination costs amounting to P181,922 and charged its client P66,991 as origination fees.

PV Factor @ 8.5% for 3 periods 0.7829 PV Factor @ 9.5% for 3 periods 0.7617 PV Factor @ 10.5% for 3 periods 0.7513 PV Factor @ 10.5% for 3 periods 0.7412 PV Factor of ordinary annuity @ 8.5% for 3 periods 2.5540 PV Factor of ordinary annuity @ 9.5% for 3 periods 2.5089 PV Factor of ordinary annuity @ 10.5% for 3 periods 2.4869 PV Factor of ordinary annuity @ 10.5% for 3 periods 2.4651