The purchase of a new car requires P100,000 down payment and the balance to be paid at P300,000 after 2 years and P600,000 after 5 years. The rate of interest is 18% compounded monthly. a. Find the present worth of the car. b. Find the lump sum payment if the car is paid after 5 years. c. With a downpayment of P100,000 and monthly interest of 1.50%, find the monthly amortization for the 5 years.

The purchase of a new car requires P100,000 down payment and the balance to be paid at P300,000 after 2 years and P600,000 after 5 years. The rate of interest is 18% compounded monthly. a. Find the present worth of the car. b. Find the lump sum payment if the car is paid after 5 years. c. With a downpayment of P100,000 and monthly interest of 1.50%, find the monthly amortization for the 5 years.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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