John Perez receives P 90,000.00 credit for his old automobile when buying a new model costing P 450,000.00. What cash payment will be necessary so that the balance can be liquidated by payments of P 20,000.00 at the end of each month for 20 months when interest is charged at the rate of 8% compounded monthly?

John Perez receives P 90,000.00 credit for his old automobile when buying a new model costing P 450,000.00. What cash payment will be necessary so that the balance can be liquidated by payments of P 20,000.00 at the end of each month for 20 months when interest is charged at the rate of 8% compounded monthly?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 19PROB

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