An employee earning P15,000 a month can only afford to buy a car requiring a down payment of P15,000 and monthly amortization of not more than 20% of his monthly salary. What would be the maximum cash value of a car he can purchase if the seller will agree to a down payment of P15,000 and the balance payable in 3 years at 20% per year payable on a monthly basis? The first payment will be due at the end of the first month.

An employee earning P15,000 a month can only afford to buy a car requiring a down payment of P15,000 and monthly amortization of not more than 20% of his monthly salary. What would be the maximum cash value of a car he can purchase if the seller will agree to a down payment of P15,000 and the balance payable in 3 years at 20% per year payable on a monthly basis? The first payment will be due at the end of the first 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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