A farmer bought a tractor costing P1,200,000.00 if paid in cash. The tractor may also be purchased by installment to be paid within 5 years. Money is worth 8% compounded annually. Determine the amount of each annual payment if all payments are made at the end of each of the 5 years. determine the amount of each annual payment if all payments are made at the beginning of each of the 5 years.
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.
A farmer bought a tractor costing P1,200,000.00 if paid in cash. The tractor may also be purchased by installment to be paid within 5 years. Money is worth 8% compounded annually. Determine the amount of each annual payment if all payments are made at the end of each of the 5 years.
determine the amount of each annual payment if all payments are made at the beginning of each of the 5 years.
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