An Engineer bought an equipment and have paid P 100,000 cash and agreed to pay P20,000 at the end of each 6 months for 5 years. He failed to pay the first 5 payments. At the end of 3 years, he is required to pay all accumulated and future liabilities, otherwise the equipment would be retrieved by the seller. What must he pay if money is worth 12% compounded semi-annually?
An Engineer bought an equipment and have paid P 100,000 cash and agreed to pay P20,000 at the end of each 6 months for 5 years. He failed to pay the first 5 payments. At the end of 3 years, he is required to pay all accumulated and future liabilities, otherwise the equipment would be retrieved by the seller. What must he pay if money is worth 12% compounded semi-annually?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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An Engineer bought an equipment and have paid P 100,000 cash and
agreed to pay P20,000 at the end of each 6 months for 5 years. He failed
to pay the first 5 payments. At the end of 3 years, he is required to pay all
accumulated and future liabilities, otherwise the equipment would be
retrieved by the seller. What must he pay if money is worth 12%
compounded semi-annually?
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