1. A television set is for sale at ₱ 13,499 in cash or on installment terms, ₱ 2,500 each month for the next 6 months at 9% compounded annually. If you were the buyer, what would you prefer, cash or installment

1. A television set is for sale at ₱ 13,499 in cash or on installment terms, ₱ 2,500 each month for the next 6 months at 9% compounded annually. If you were the buyer, what would you prefer, cash or installment

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 4P

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Calculating the Return On A Loan

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Answer the problem given below by showing your complete solution and your
decision on a sheet of paper.
1. A television set is for sale at ₱ 13,499 in cash or on installment terms,
₱ 2,500 each month for the next 6 months at 9% compounded annually.
If you were the buyer, what would you prefer, cash or installment?

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