In solving, indicate the Cash Flow Diagram and Solution A man bought a ford vintage car for Php 526630 on installment basis at the rate of 12% per year compounded annually on the unpaid balance. if he paid a down payment of Php 138146 in cash and proposes to pay the balance in 24 quarterly payments, what should this payment be? (Round off interest rate to five decimal places ) Note: use the reference formulas to solve this
In solving, indicate the Cash Flow Diagram and Solution A man bought a ford vintage car for Php 526630 on installment basis at the rate of 12% per year compounded annually on the unpaid balance. if he paid a down payment of Php 138146 in cash and proposes to pay the balance in 24 quarterly payments, what should this payment be? (Round off interest rate to five decimal places ) Note: use the reference formulas to solve this
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 1Q
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Question
In solving, indicate the Cash Flow Diagram and Solution
A man bought a ford vintage car for Php 526630 on installment basis at the rate of 12% per year compounded annually on the unpaid balance. if he paid a down payment of Php 138146 in cash and proposes to pay the balance in 24 quarterly payments, what should this payment be? (Round off interest rate to five decimal places )
Note: use the reference formulas to solve this
![Annuity Formula
UNIFORM SERIES PRESENT WORTH FACTOR
(P/A)
P = A (P/A, 1%, n)
1−(1+i)¯n¸
P =A[¹ −( i
UNIFORM SERIES CAPITAL RECOVERY FACTOR
(A/P)
A=P (A/P, 1%, n)
i
A=P[₁(1+i)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe204fad-ee76-46ba-8a00-9e0435bbb23b%2F9c04d5a3-2dd7-468d-862f-bf2c61236ada%2Fw9i3qzd.jpeg&w=3840&q=75)
Transcribed Image Text:Annuity Formula
UNIFORM SERIES PRESENT WORTH FACTOR
(P/A)
P = A (P/A, 1%, n)
1−(1+i)¯n¸
P =A[¹ −( i
UNIFORM SERIES CAPITAL RECOVERY FACTOR
(A/P)
A=P (A/P, 1%, n)
i
A=P[₁(1+i)
![Annuity Formula
UNIFORM SERIES COMPOUND AMOUNT FACTOR
(F/A)
F = A (F/A, 1%, n)
‚(1+i)”−1-
F =A[(¹+1)"=1]
i
UNIFORM SERIES SINKING FACTOR (PIA)
A = F (A/F, 1%, n)
i
¯(1+i)n−1-
A= F [](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe204fad-ee76-46ba-8a00-9e0435bbb23b%2F9c04d5a3-2dd7-468d-862f-bf2c61236ada%2F77bs5r.jpeg&w=3840&q=75)
Transcribed Image Text:Annuity Formula
UNIFORM SERIES COMPOUND AMOUNT FACTOR
(F/A)
F = A (F/A, 1%, n)
‚(1+i)”−1-
F =A[(¹+1)"=1]
i
UNIFORM SERIES SINKING FACTOR (PIA)
A = F (A/F, 1%, n)
i
¯(1+i)n−1-
A= F [
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