A man purchases a lot worth 1,000,000 if paid in cash. On installment basis, he paid P200,000 down payment, P300,000 at the end of the year, P400,000 at the end of the fourth year and the last payment at the end of the 5th year. If money is worth 16%, what is the worth of the last payment?
A man purchases a lot worth 1,000,000 if paid in cash. On installment basis, he paid P200,000 down payment, P300,000 at the end of the year, P400,000 at the end of the fourth year and the last payment at the end of the 5th year. If money is worth 16%, what is the worth of the last payment?
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
Related questions
Question
Answer and draw neatly the necessary cash flow diagrams, and box your final answers.
A man purchases a lot worth 1,000,000 if paid in cash. On installment basis, he paid P200,000 down payment, P300,000 at the end of the year, P400,000 at the end of the fourth year and the last payment at the end of the 5th year. If money is worth 16%, what is the worth of the last payment?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education