STL service and installation works purchased a diesel generator from the ABB Electric Company valued at P2, 500. 000.00 on an easy payment plan, as follows: 20% cash upon delivery of the unit and the balance to be paid in 24 monthly installments with 12 % nominal interest on the unpaid balance. a. How much would the STL pay each month to the ABB Electric Co.? b. If instead of the above terms, the STL decided to start a sinking fund to enable it to purchase the same motor after 2 years on cash basis at the same value less 10% discount for cash purchase, how much would the monthly deposit in the fund be, if the money will earn interest at 6%. Assume interest rates are compounded monthly.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
6. STL service and installation works purchased a diesel generator from the ABB Electric Company
valued at P2, 500. 000.00 on an easy payment plan, as follows: 20% cash upon delivery of the unit
and the balance to be paid in 24 monthly installments with 12 % nominal interest on the unpaid
balance.
a. How much would the STL pay each month to the ABB Electric Co.?
b. If instead of the above terms, the STL decided to start a sinking fund to enable it to purchase
the same motor after 2 years on cash basis at the same value less 10% discount for cash
purchase, how much would the monthly deposit in the fund be, if the money will earn interest
at 6%. Assume interest rates are compounded monthly.
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