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What cash payment will be necessary

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Problem 1: The present value of an annuity R pesos payable annually for 10 years , with the first payment at the end of 10 years is P100, 701.30 . If money is worth 8% , what is the value of R?

Problem 2: A man receives P125, 000.00 credits for his old car when buying a new model costing P375,000.00. What cash payment will be necessary so that the balance can be liquidated by payments of P12, 500.00 at the end of each month for 18 months when interest is charge at the rate of 6% compounded monthly?

Reference no: EM132759504

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