Zee bought the newest television for Php 500,000. He gave a down payment of Php 75,000 in order to receive the item. He also paid Php 100,000 after 1 year and Php 150,000 3 years after receiving the item. How much would he need to pay on the 5th year to completely pay off the item if interest is compounded at 12% per year? Show the cash flow diagram and use equation of values to solve for the requirement with year 4 as the focal date.

Zee bought the newest television for Php 500,000. He gave a down payment of Php 75,000 in order to receive the item. He also paid Php 100,000 after 1 year and Php 150,000 3 years after receiving the item. How much would he need to pay on the 5th year to completely pay off the item if interest is compounded at 12% per year? Show the cash flow diagram and use equation of values to solve for the requirement with year 4 as the focal date.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 10E

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