Pedro Paramo is considering to buy a Mini Cooper in 4 years from now, after some economic predictions, he estimates the price of the car in $650,000 Mexican pesos.

Pedro wants to know the amount he must deposit each month at 1% (monthly rate) to accumulate $650,000 pesos at the end of 4 year, to be ready to buy the car.

At the end of the second year, he decided, instead of buying a new car, to buy an Apartment, with a cost of $3,000,000. The amount accumulated at end of second year, applied it as a down payment, for the rest, he asked a loan which will repay the principal plus the interests in 15 years with monthly payments. You have asked to determine the amortization table (equal payments, at 2% per month) considering in year 6, he will repay additional $300,000 to loan principal.

Answer rating: 100% (QA)

SOLUTION To determine the amount Pedro must deposit each month to accumulate 650000 pesos at the end ... View the full answer