An item of merchandise costing P436,510 was sold by A, Inc. The agreed selling price was P1,000,000 payable as follows: 20% upon the signing of the contract on January 1, 2022. The balance is payable in 4 semi-annual installments every June 30 and December 31. Assume that the relevant discount rate is 12%. Present value factors are as follows: Present value of annuity of 6% over 4 periods 3.4651 Present value of annuity of 12% over 4 periods 3.0373 Determine the total amount of sales in 2022
An item of merchandise costing P436,510 was sold by A, Inc. The agreed selling price was P1,000,000 payable as follows: 20% upon the signing of the contract on January 1, 2022. The balance is payable in 4 semi-annual installments every June 30 and December 31. Assume that the relevant discount rate is 12%. Present value factors are as follows: Present value of annuity of 6% over 4 periods 3.4651 Present value of annuity of 12% over 4 periods 3.0373 Determine the total amount of sales in 2022
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
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An item of merchandise costing P436,510 was sold by A, Inc. The agreed selling price was P1,000,000 payable as follows: 20% upon the signing of the contract on January 1, 2022. The balance is payable in 4 semi-annual installments every June 30 and December 31. Assume that the relevant discount rate is 12%.
Present value of
Present value of annuity of 12% over 4 periods 3.0373
Determine the total amount of sales in 2022
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