Engineering Board Exam Reviewer · Ordinary Annuity · medium
A car priced at P1,200,000 is bought with a 20% down payment, and the balance is paid by equal year-end payments for 5 years at 12% interest. Find the annual payment.
- P266,313.34
- P192,000
- P332,891.68
- P22,192.78
Answer
A. P266,313.34
Solution
Amount financed =0.80(1,200,000)=P960,000. A=960,000(A/P,12%,5)=960,000(0.277410)=P266,313.34.
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