A Honda car can be purchased by paying a down payment of P150,000 and the balance to be paid with two installments, the first installment to be after two years and the other which is twice than the first installment would be after another 3 years.
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.
A Honda car can be purchased by paying a down payment of P150,000 and the balance to be paid with
two installments, the first installment to be after two years and the other which is twice than the first
installment would be after another 3 years. If the car could be acquired with 10% down payment and the
3,000 balance to be paid with 12 monthly installments of P40,000, determine the amount of the first and second
installments of the 1st option if interest rate is 15% compounded semiannually.
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