An cellphone is for sale at either (a) P15,999 cash or, (b) on terms, P1,499 each month for 12 months. Money is 9% compounded monthly. Which is lower, the cash price or the present value of the installment terms? Explain. Write your computation below.

An cellphone is for sale at either (a) P15,999 cash or, (b) on terms, P1,499 each month for 12 months. Money is 9% compounded monthly. Which is lower, the cash price or the present value of the installment terms? Explain. Write your computation below.

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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