A gasoline engine is available on instalment basis with a down payment of P 10,682 and P 5,479 at the end of each month for one year. What is the cash price of the engine if interest is set at 10% compounded monthly if payments are done every beginning of the month?
A gasoline engine is available on instalment basis with a down payment of P 10,682 and P 5,479 at the end of each month for one year. What is the cash price of the engine if interest is set at 10% compounded monthly if payments are done every beginning of the month?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
100%
Topic: Annuities Due (payments at the beginning of the month)
Formulas:
Future value - F=C [(1+i)^n -1/i] (1+i)
Present value- P=C [1-(1+i)^-n/i] (1+i)
P.S, Please show Manual Solving thanks!
Transcribed Image Text:A gasoline engine is available on instalment basis with a down payment of P
10,682 and P 5,479 at the end of each month for one year. What is the cash price
of the engine if interest is set at 10% compounded monthly if payments are done
every beginning of the month?
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