A house and lot were offered for sale for P 10 million if paid in cash. However,
Question:
A house and lot were offered for sale for P 10 million if paid in cash. However, an installment basis is an option wherein the buyer needs to pay P 2.5 million as a down payment and the remaining balance be paid within a five-year period. Payments are of the following condition: an equal-end of quarter payment of P 600, 000 for a period of two years, then an end of a monthly payment for a period of three years in which monthly payments decrease by P 1000 until the last monthly payment. Money is 12% effective. (Please draw a cash flow diagram).
a) What was the amount of the first monthly payment?
b) What was the amount of the 20th monthly payment?
c) Find the sum of all the payments.
d) If the remaining balance be paid by an equal-end of a semi-annual payments instead of the above condition, how much would it then be?
Expert Answer:
Total value of house and lot 10 million Down payment value 2s mllion Total val... View the full answer
