A man purchases a lot worth 5M if paid in cash. On installment basis, he paid P800,000 down payment, P900,000 at the end of the year, P1,650,000 at the end of the third year and the last payment at the end of the 6th year. If money is worth 16%, what is the worth of the last payment?

A man purchases a lot worth 5M if paid in cash. On installment basis, he paid P800,000 down payment, P900,000 at the end of the year, P1,650,000 at the end of the third year and the last payment at the end of the 6th year. If money is worth 16%, what is the worth of the last payment?

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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