Polly purchased a car. She paid ₱150,000.00 as down payment, and ₱5,500.00 payable at the beginning of each month for 48 months. Money is worth 12% compounded monthly. What is the periodic rate? How many payments must be made? What is the equivalent cash price of the car?
Polly purchased a car. She paid ₱150,000.00 as down payment, and ₱5,500.00 payable at the beginning of each month for 48 months. Money is worth 12% compounded monthly. What is the periodic rate? How many payments must be made? What is the equivalent cash price of the car?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Polly purchased a car. She paid ₱150,000.00 as down payment, and ₱5,500.00 payable at the beginning of each month for 48 months. Money is worth 12% compounded monthly.
What is the periodic rate?
How many payments must be made?
What is the equivalent cash price of the car?
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