8. An employee is earning P12,000 a month and he can afford to purchase a car which will require down payment of P10,000 and a monthly amortization of not more than 30% of his monthly salary. What would be the maximum cash value of a car he can purchase if the seller will agree to a down payment of P10,000 and the balance payable in four years at 18% per year payable in monthly basis. The first payment will be due at the end of the first month?
8. An employee is earning P12,000 a month and he can afford to purchase a car which will require down payment of P10,000 and a monthly amortization of not more than 30% of his monthly salary. What would be the maximum cash value of a car he can purchase if the seller will agree to a down payment of P10,000 and the balance payable in four years at 18% per year payable in monthly basis. The first payment will be due at the end of the first month?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 3SEQ
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Question
Answer the following question. Use the given formula.
Transcribed Image Text:8. An employee is earning P12,000 a month and he can afford to purchase a car which will require
down payment of P10,000 and a monthly amortization of not more than 30% of his monthly
salary. What would be the maximum cash value of a car he can purchase if the seller will agree to
a down payment of P10,000 and the balance payable in four years at 18% per year payable in
monthly basis. The first payment will be due at the end of the first month?
![FORMULA (s)
о 1 2 3...n
o 1 2
3... n
A[(1+i)"-1]
Where: i = interest per period
n =number of periods
F =
i
A = uniform series compound
A[(1+i)" – 1]
(1+ i )" i
P =
amount factor
PRESENT WORTH OF PERPETUITY:
A
P](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ce3d9cf-1b06-49cf-ad5e-a0f9cb906a35%2Ff40cf11e-416d-4d7b-927d-37a3c2649e1c%2Feknwci7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:FORMULA (s)
о 1 2 3...n
o 1 2
3... n
A[(1+i)"-1]
Where: i = interest per period
n =number of periods
F =
i
A = uniform series compound
A[(1+i)" – 1]
(1+ i )" i
P =
amount factor
PRESENT WORTH OF PERPETUITY:
A
P
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