A man bought a lot worth P2424737 if paid in cash. By installment, he paid a down payment of P250,000; P584444 at the end of one year; P406358 at the end of 3 years and final payment at the end of five years. What is the final payment if the interest was 20% cpd. annually?

A man bought a lot worth P2424737 if paid in cash. By installment, he paid a down payment of P250,000; P584444 at the end of one year; P406358 at the end of 3 years and final payment at the end of five years. What is the final payment if the interest was 20% cpd. annually?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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A man bought a lot worth P2424737 if paid in cash. By installment, he paid a down payment of P250,000; P584444 at the end of one year; P406358
at the end of 3 years and final payment at the end of five years. What is the final payment if the interest was 20% cpd. annually?

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