Pepito Catamco is excited to own a brand new Toyota car. Toyota is selling the for P1.2million. The required down-payment is 25% of the selling price. Banco de Coco is willing to finance the unit at 12% annual interest. Pepito wants to pay on a quarterly basis good for three years only. How much is the quarterly payment of the loan for three years? How much is the outstanding balance of the loan after paying for one year?
Pepito Catamco is excited to own a brand new Toyota car. Toyota is selling the for P1.2million. The required down-payment is 25% of the selling price. Banco de Coco is willing to finance the unit at 12% annual interest. Pepito wants to pay on a quarterly basis good for three years only. How much is the quarterly payment of the loan for three years? How much is the outstanding balance of the loan after paying for one year?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Pepito Catamco is excited to own a brand new Toyota car. Toyota is selling the for P1.2million. The required down-payment is 25% of the selling price. Banco de Coco is willing to finance the unit at 12% annual interest. Pepito wants to pay on a quarterly basis good for three years only.
- How much is the quarterly payment of the loan for three years?
- How much is the outstanding balance of the loan after paying for one year?
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