hat remaining initial cash payment is necessary if equal payments of P 15, 000.00 at the end of each month for 20 months is charged at the rate of 7%  compounded monthly?   If he decided to add another P 100,000.00 after crediting the price of his old car, what equal payments for 15 months is necessary in order for the  balance to be repaid at 6% compounded monthly?

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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Draw the necessary cash flow diagrams.

Prob#2: A man receives a P 250,000.00 credit for his old car when buying a new model costing P 750, 000.00.  

  1. What remaining initial cash payment is necessary if equal payments of P 15, 000.00 at the end of each month for 20 months is charged at the rate of 7%  compounded monthly?  
  2. If he decided to add another P 100,000.00 after crediting the price of his old car, what equal payments for 15 months is necessary in order for the  balance to be repaid at 6% compounded monthly?
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