Suppose that you are looking to acquire a foreign super car to match your newly bought mansion. The dealership agrees to your bargain where you pay a down payment of 500 thousand pesos. To pay off the car, you are to pay an annual payment of 100 thousand pesos at the end of every year for a span of 10 years. However, your payment begins after 5 years from the deposit. Determine the amount of the super car if the rate is 14% compounded annually. Show Complete Solution.
Suppose that you are looking to acquire a foreign super car to match your newly bought mansion. The dealership agrees to your bargain where you pay a down payment of 500 thousand pesos. To pay off the car, you are to pay an annual payment of 100 thousand pesos at the end of every year for a span of 10 years. However, your payment begins after 5 years from the deposit. Determine the amount of the super car if the rate is 14% compounded annually. Show Complete Solution.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that you are looking to acquire a foreign super car to match your newly bought mansion. The dealership agrees to your bargain where you pay a down payment of 500 thousand pesos. To pay off the car, you are to pay an annual payment of 100 thousand pesos at the end of every year for a span of 10 years. However, your payment begins after 5 years from the deposit. Determine the amount of the super car if the rate is 14% compounded annually. Show Complete Solution.
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