Your uncle will sell you his bicycle shop for P800,000, with "seller financing," at a 10.0% nominal annual rate. The terms of the loan would require you to make 6 equal bi-monthly (end of every 2 months) payments per year for 6 years, and then make an additional final (balloon) payment of P150,000 at the end of the last month. What would your equal bi-monthly payments be? (Clue, your knowledge on equivalent values can be used on this problem)
Your uncle will sell you his bicycle shop for P800,000, with "seller financing," at a 10.0% nominal annual rate. The terms of the loan would require you to make 6 equal bi-monthly (end of every 2 months) payments per year for 6 years, and then make an additional final (balloon) payment of P150,000 at the end of the last month. What would your equal bi-monthly payments be? (Clue, your knowledge on equivalent values can be used on this problem)
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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Your uncle will sell you his bicycle shop for P800,000, with "seller financing," at a 10.0% nominal annual rate. The terms of the loan would require you to make 6 equal bi-monthly (end of every 2 months) payments per year for 6 years, and then make an additional final (balloon) payment of P150,000 at the end of the last month. What would your equal bi-monthly payments be? (Clue, your knowledge on equivalent values can be used on this problem)
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