1. A man paid 10% down payment of P1,000,000 for a house and lot this month of January. The rate of interest is 20% compounded quarterly. He agrees to pay after 5 months his balance on a 6 monthly installment. Compute for the following.   (1) Effective Interest C = Blank 1 K = Blank 2 Thus, ieff = Blank 3 NOTE: Show in 4 decimal places.   (2) Amount of the Monthly Installment = PHP Blank 4

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 8E: Cash Flow Amounts R. Lee Rouse borrows 10,000 that is to be repaid in 24 equal monthly installments...
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1. A man paid 10% down payment of P1,000,000 for a house and lot this month of January. The rate of interest is 20% compounded quarterly. He agrees to pay after 5 months his balance on a 6 monthly installment. Compute for the following.

 

(1) Effective Interest

C = Blank 1

K = Blank 2

Thus, ieff = Blank 3 NOTE: Show in 4 decimal places.

 

(2) Amount of the Monthly Installment = PHP Blank 4

 

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