Juan bought a cellphone with a cash value of P17500 on the installment plan under the following terms: P4000 cash upon delivery and the balance payable in 12 equal monthly payments, each payment combining an amortization installment and 6% monthly interest on the previously unpaid balance. (a) solve for each monthly payment.
Juan bought a cellphone with a cash value of P17500 on the installment plan under the following terms: P4000 cash upon delivery and the balance payable in 12 equal monthly payments, each payment combining an amortization installment and 6% monthly interest on the previously unpaid balance. (a) solve for each monthly payment.
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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Juan bought a cellphone with a cash value of P17500 on the installment plan under the following terms: P4000 cash upon delivery and the balance payable in 12 equal monthly payments, each payment combining an amortization installment and 6% monthly interest on the previously unpaid balance.
(a) solve for each monthly payment.
(b) at the end of 8 months, he was forced to sell the cellphone in order to pay a P7,000 debt. At what price must he sell his cellphone so that he can completely pay the cellphone and also pay his P7,000 debt.?
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