Pedro bought a new car today from Barboncito Motors. The former proposed to pay the latter the remaining balance of P700,000.00 in 35 equal monthly payments, with the first installment to be made a month from today, plus a payment of P30,000.00 two months from today. If the interest rate applicable to the transaction is 12% compounded monthly, and assuming that there will be timely payments, how much is the amount of Pedro’s Monthly Payment ?
Pedro bought a new car today from Barboncito Motors. The former proposed to pay the latter the remaining balance of P700,000.00 in 35 equal monthly payments, with the first installment to be made a month from today, plus a payment of P30,000.00 two months from today. If the interest rate applicable to the transaction is 12% compounded monthly, and assuming that there will be timely payments, how much is the amount of Pedro’s 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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Pedro bought a new car today from Barboncito Motors. The former proposed to pay the latter the remaining balance of P700,000.00 in 35 equal monthly payments, with the first installment to be made a month from today, plus a payment of P30,000.00 two months from today. If the interest rate applicable to the transaction is 12% compounded monthly, and assuming that there will be timely payments, how much is the amount of Pedro’s Monthly Payment ?
Kindly put the graph and solutio as well as the final answer
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