question archive M purchased a small lot in a subdivision, paying P200,000 down and promising to pay P15,000 every 3 months for the next 10 years
M purchased a small lot in a subdivision, paying P200,000 down and promising to pay P15,000 every 3 months for the next 10 years
Subject:FinancePrice: Bought3
M purchased a small lot in a subdivision, paying P200,000 down and promising to pay P15,000 every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly. a. What was the cash price of the lot? b. If M missed the first 12 payments, what must he pay at the time the 13th is due to bring him up to date? c. After making 8 payments, M wished to discharge his remaining indebtedness by a single payment at the time when the 9th regular payment was due, what must he pay in addition to the regular payment then due? d. If M missed the first 10 payments, what must he pay when the 11th payment is due to discharge his entire indebtedness?
