A contractor is planning to purchase a machine one year from now at a cost of Php1 Million. The interest rate is 1.5% per month compounded monthly. 1. Determine the value that the contractor will deposit now to purchase the machine. a. P695,000 b. P712,000 c. P837,000 d. P940,000 2. Determine the 12-equal deposits starting at the end of the first month to purchase the machine. a. Php 83,500 b. Php 64,200 c. Php 51,500 d. Php 76,700
A contractor is planning to purchase a machine one year from now at a cost of Php1 Million. The interest rate is 1.5% per month compounded monthly. 1. Determine the value that the contractor will deposit now to purchase the machine. a. P695,000 b. P712,000 c. P837,000 d. P940,000 2. Determine the 12-equal deposits starting at the end of the first month to purchase the machine. a. Php 83,500 b. Php 64,200 c. Php 51,500 d. Php 76,700
Chapter7: Budgeting
Section: Chapter Questions
Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...
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A contractor is planning to purchase a machine one year from now at a cost of Php1 Million. The interest rate is 1.5% per month compounded monthly.
1. Determine the value that the contractor will deposit now to purchase the machine.
a. P695,000
b. P712,000
c. P837,000
d. P940,000
2. Determine the 12-equal deposits starting at the end of the first month to purchase the machine.
a. Php 83,500
b. Php 64,200
c. Php 51,500
d. Php 76,700
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