Pedro bought a new car today from Barboncito Motors. The former proposed to pay the latter the remaining balance of P800,000.00 in 35 equal monthly payments, with the first installment to be made one month from today, plus one final payment of P50,000.00 at the end of 36 months from date of agreement. If the interest rate applicable to the transaction is 12% compounded monthly, and assuming that there will be timely payments, how much is the amount of Pedro's Monthly Payment ?

Pedro bought a new car today from Barboncito Motors. The former proposed to pay the latter the remaining balance of P800,000.00 in 35 equal monthly payments, with the first installment to be made one month from today, plus one final payment of P50,000.00 at the end of 36 months from date of agreement. If the interest rate applicable to the transaction is 12% compounded monthly, and assuming that there will be timely payments, how much is the amount of Pedro's Monthly Payment ?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5Q: If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the...

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