1) A certain property was offered on an instalment basis wherein the buyer needs to pay 15% ofthe cash price as down payment and remaining balance be paid by a beginning of a quarterpayments for a period of 5 years. First quarterly payment amounts to P 175,000 and happens sixmonths after purchased. Quarterly payments increases an amount of P1, 200 every quarterthereof until the last payment with an interest rate of 8% effective.a) What was the cash price of the said property?b) What equivalent equal-end of a monthly payments would the remaining balance be for just aperiod of four years, assuming the first monthly payment happens after a year of purchased?c) Find the sum of all of the payments.

It is a loan amortization question, however the amortization schedule is unconventional. It requires…

Answered: 1) A certain property was offered on an…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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