A house costs Php400,000 cash. A purchaser will pay Php90,000 cash, Php60,000 at the end of 2 years, and a sequence of 6 equal annual payments starting with one at the end of 4 years, to discharge all his liability as to the principal and interest at 7% compounded semi-annually, find the annual payments which must be made for 6 years.

A house costs Php400,000 cash. A purchaser will pay Php90,000 cash, Php60,000 at the end of 2 years, and a sequence of 6 equal annual payments starting with one at the end of 4 years, to discharge all his liability as to the principal and interest at 7% compounded semi-annually, find the annual payments which must be made for 6 years.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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