Pedro bought a new car today from Barboncito Motors. The former proposed to pay the latter the remaining balance of P700,000.00 in 35 equal monthly payments, with the first installment to be made a month from today, plus a payment of P30,000.00 two months from today. 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 P700,000.00 in 35 equal monthly payments, with the first installment to be made a month from today, plus a payment of P30,000.00 two months from today. 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 ?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 12E

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