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A secondhand motorcycle can be purchased by 5 end-of-month payments. The first payment would be Php. 5,000 and would increase by Php. 500 every payment. Should a buyer opt to pay it at once rather than by installments, how much would it cost him if money is worth 6% compounded quarterly? Plss answer it step by step included the fromula units and also the cash flow diagram thanks

A secondhand motorcycle can be purchased by 5 end-of-month payments. The first payment would be Php. 5,000 and would increase by Php. 500 every payment. Should a buyer opt to pay it at once rather than by installments, how much would it cost him if money is worth 6% compounded quarterly? Plss answer it step by step included the fromula units and also the cash flow diagram thanks

Essentials Of Investments
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
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A secondhand motorcycle can be purchased by 5 end-of-month payments. The first payment would be Php. 5,000 and would increase by Php. 500 every payment. Should a buyer opt to pay it at once rather than by installments, how much would it cost him if money is worth 6% compounded quarterly? Plss answer it step by step included the fromula units and also the cash flow diagram thanks
Transcribed Image Text:A secondhand motorcycle can be purchased by 5 end-of-month payments. The first payment would be Php. 5,000 and would increase by Php. 500 every payment. Should a buyer opt to pay it at once rather than by installments, how much would it cost him if money is worth 6% compounded quarterly? Plss answer it step by step included the fromula units and also the cash flow diagram thanks
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