A condominium unit can be bought at a down payment of P150,000 and a monthly payment of P 23,347 for 10 years starting at the end of 5th year from the date of purchase. If money is worth 3% compounded monthly, what is the cash price of the condominium unit?

A condominium unit can be bought at a down payment of P150,000 and a monthly payment of P 23,347 for 10 years starting at the end of 5th year from the date of purchase. If money is worth 3% compounded monthly, what is the cash price of the condominium unit?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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A condominium unit can be bought at a down payment of P150,000 and a monthly payment of P 23,347 for
10 years starting at the end of 5th year from the date of purchase. If money is worth 3% compounded
monthly, what is the cash price of the condominium unit?

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