A brand new house and lot costs Php 5M if paid in cash. On the installment plan, the buyer should pay 20% down and 25 yearly instalments. The first payment is due at the end of the 1st year. If money is worth 5% compounded annually, determine the amount of annual
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
1. A brand new house and lot costs Php 5M if paid in cash. On the installment plan, the buyer should pay 20% down and 25 yearly instalments. The first payment is due at the end of the 1st year. If money is worth 5% compounded annually, determine the amount of annual installments.
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