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What the eight equal annual payment is

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Problem 1: Bangkok Corporation sold a machine on July 1, 2011. The cash price of the machine is P 79,000.The buyer signed a deferred payment contract that provides for a down payment of P 10,000 and an 8-year note bearing interest at 10%. The note is to be paid in 8 equal annual payments. The payments are made on June 30 of each year, beginning on June 30, 2012. The 8 equal annual payment is

a. P14,808            c. P13,462
b. P12,934            d. P11,75

Reference no: EM132685196

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