Q1. Aling Azon bought 3 sets of air conditioning unit for her three bedrooms. She agreed to pay 5,000Php down payment and 3,000Php monthly instalments for 1 year. If the rate of interest is 8% compounded per month, what is the equivalent cash price of the air conditioning unit?

Q1. Aling Azon bought 3 sets of air conditioning unit for her three bedrooms. She agreed to pay 5,000Php down payment and 3,000Php monthly instalments for 1 year. If the rate of interest is 8% compounded per month, what is the equivalent cash price of the air conditioning unit?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 19PROB

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This is how you answer the problem

(a) Identify the Given and the Unknown or what is being asked in the problem

(b)Provide the formula to be used

(c)Plug in the given in the formula if there is a derivation of the formula please show it

(d)Box the final answer. however, the final answer is already included in the problem, what you need to do is to match your answer and the answer in the book. Because in the book they only provide the answer but not the solution.

Problem:

Q1. Aling Azon bought 3 sets of air conditioning unit for her three bedrooms. She agreed to pay
5,000Php down payment and 3,000Php monthly instalments for 1 year. If the rate of interest is 8%
compounded per month, what is the equivalent cash price of the air conditioning unit?
Answer: P = 39,487.35Php
%3D

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