Question: A man bought a condominium unit worth P3.9M a pay a down payment of P1.5M and agreed to pay the remaining balance as follows:

A man bought a condominium unit worth P3.9M a pay a down payment of P1.5M and agreed to pay the remaining balance as follows: P600,000 at the end of the 2nd year; P755,000 at the beginning of the 5th year; P850,000 at the end of the 6th year and an unknown payment at the end of the 10th year. Assume an 5% interest rate. QUESTION: What is the present worth of the second instalment payment?

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