Assel is scouting a DLSR camera to cover her parents' silver wedding anniversary. She found one at ₱35,950, paid ₱5,000 cash and the remaining will be paid in 12 months at 3 1/4% interest compounded monthly. How much the monthly payment?

Assel is scouting a DLSR camera to cover her parents' silver wedding anniversary. She found one at ₱35,950, paid ₱5,000 cash and the remaining will be paid in 12 months at 3 1/4% interest compounded monthly. How much the monthly payment?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

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