An asphalt road requires no repairs until the end of 2 years. At the end of 3rd year, P90,000 will be needed for repairs for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If moneyis worth 14% compounded annually, what is the present value of the repair cost and its equivalent uniform annual cost for the 12-year period?
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.
An asphalt road requires no repairs until the end of 2 years. At the end of 3rd year, P90,000 will be needed for repairs for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If moneyis worth 14% compounded annually, what is the present value of the repair cost and its equivalent uniform annual cost for the 12-year period?
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