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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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?
Include cashflow if possible
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