A gasoline engine is available on instalment basis with a down payment of P 11,645 and P 4,158 at the end of each month for one year. What is the cash price of the engine if interest is set at 9% compounded monthly if payments are done every beginning of the month?

A gasoline engine is available on instalment basis with a down payment of P 11,645 and P 4,158 at the end of each month for one year. What is the cash price of the engine if interest is set at 9% compounded monthly if payments are done every beginning of the month?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A gasoline engine is available on instalment basis with a down payment
of P 11,645 and P 4,158 at the end of each month for one year. What
is the cash price of the engine if interest is set at 9% compounded
monthly if payments are done every beginning of the month?

AP 41,266debt is to be paid off in eight equal quarterly payments at 5%
compounded quarterly. What should be the amount of each payment if
payments are done every beginning of the month?

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