Problem Statement: ME Board April 1998
A house and lot can be acquired by a downpayment of P500,000 and a yearly payment of P100,000 at the end of each year for a period of 10 years, starting at the end of 5 years from the date of purchase. If money is worth 14% compounded annually, what is the cash price of the property?
- A. P806,899.33
- B. P807,100.12
- C. P807,778.12
- D. P808,835.92
The cash price of the property is P808,835.92.
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