Ben bought a brand new bike costing P38,000 if paid in cash. However, she can purchase it on installment basis to be paid within 5 years. If money is worth 8% compounded annually, what is her yearly amortization if all payments will begin two years after the purchase? The answer here is 10278.73, kindly show your solution and the cash flow diagram thanks
Ben bought a brand new bike costing P38,000 if paid in cash. However, she can purchase it on installment basis to be paid within 5 years. If money is worth 8% compounded annually, what is her yearly amortization if all payments will begin two years after the purchase? The answer here is 10278.73, kindly show your solution and the cash flow diagram thanks
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Ben bought a brand new bike costing P38,000 if paid in cash. However, she can purchase it on installment basis to be paid within 5 years. If money is worth 8% compounded annually, what is her yearly amortization if all payments will begin two years after the purchase?
The answer here is 10278.73, kindly show your solution and the cash flow diagram thanks !
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