Air handling equipment that costs P12, 000 has a life of eight years with a P2, 000 salvage value. Using sinking fund method, what is the book value at the end of 4 years? Assume interest at 4.5% compounded annually.
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.
Air handling equipment that costs P12, 000 has a life of eight years with a P2, 000 salvage value. Using sinking fund method, what is the book value at the end of 4 years? Assume interest at 4.5% compounded annually.
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