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fa low cost house and lot worth P 87,000 vere offered at 10% down payment and P 500 per month for 25 years, what is the effective monthly interest rate on the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If a low cost house and lot worth P 87,000
were offered at 10% down payment and P
500 per month for 25 years, what is the
effective monthly interest rate on the
diminishing balance?
Answer: 0.492%

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