15. M purchased a small lot in a subdivision, paying P200.000 down and promising to pay P15.000 every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly. (a) What was the cash price of the lot? (b) If M missed the first 12 payments, what must he pay at the time the 13th is due to bring himself up to date? (c) After making 8 payments. M wished to discharge his remaining indebtedness by a single payment at the time when the 9th regular payment was due. what must he pay in addition to the regular payment then due? (d) If M missed the first 10 payments, what must he pay when the 11th payment is due to discharge his entire indebtedness? Ans. (a) P546. 722: (b) P234.270 (c) P300,006; (d) P479.948
15. M purchased a small lot in a subdivision, paying P200.000 down and promising to pay P15.000 every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly. (a) What was the cash price of the lot? (b) If M missed the first 12 payments, what must he pay at the time the 13th is due to bring himself up to date? (c) After making 8 payments. M wished to discharge his remaining indebtedness by a single payment at the time when the 9th regular payment was due. what must he pay in addition to the regular payment then due? (d) If M missed the first 10 payments, what must he pay when the 11th payment is due to discharge his entire indebtedness? Ans. (a) P546. 722: (b) P234.270 (c) P300,006; (d) P479.948
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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Question
Use equation of value if possible and draw cash flow diagram
Transcribed Image Text:15. M purchased a small lot in a subdivision, paying P200,000
down and promising to pay P15.000 every 3 months for the next 10
years. The seller figured interest at 12% compounded quarterly.
(a) What was the cash price of the lot?
(b) If M missed the first 12 payments. what must he pay at the
time the 13th is due to bring himself up to date?
(c) After making 8 payments. M wished to discharge his
remaining indebtedness by a single payment at the time when
the 9th regular payment was due, what must he pay in
addition to the regular payment then due?
(d) If M missed the first 10 payments, what must he pay when
the 11th payment is due to discharge his entire indebtedness?
Ans. (a) P546. 722: (b) P234.270 (c) P300,006; (d) P479.948
Transcribed Image Text:P = A + A
[(1 + i)¹-¹
i(1+i)¹−¹
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