You purchased a second-hand car worth ₱ 420,000 if paid in cash. You were able to negotiate with a financing agency to allow you to pay only with a down payment amounting to 20% of the cash price and the balance payable in equal monthly payments for four years at 1.5% per month. Immediately after your 20th installment, you decided to pay the remainder of the loan in a lump sum. How much is this payment?
You purchased a second-hand car worth ₱ 420,000 if paid in cash. You were able to negotiate with a financing agency to allow you to pay only with a down payment amounting to 20% of the cash price and the balance payable in equal monthly payments for four years at 1.5% per month. Immediately after your 20th installment, you decided to pay the remainder of the loan in a lump sum. How much is this payment?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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You purchased a second-hand car worth ₱ 420,000 if paid in cash. You were able to
negotiate with a financing agency to allow you to pay only with a down payment amounting
to 20% of the cash price and the balance payable in equal monthly payments for four years
at 1.5% per month. Immediately after your 20th installment, you decided to pay the
remainder of the loan in a lump sum. How much is this payment?
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