A man decided to buy a brand new car. The car's cash price is P 2M. There is an option for installment but he needs to make a down payment of 50% of the cash price, then P 300K at the end of first year, P 200K at the end of second year, P 100K at the end of third year, P250K at the end of fourth year and a last payment at the end of sixth year. If the interest is 16%, how much does he need for the last payment?

A man decided to buy a brand new car. The car's cash price is P 2M. There is an option for installment but he needs to make a down payment of 50% of the cash price, then P 300K at the end of first year, P 200K at the end of second year, P 100K at the end of third year, P250K at the end of fourth year and a last payment at the end of sixth year. If the interest is 16%, how much does he need for the last payment?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 28P

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