A house costs P 400,00 cash.

A purchaser will pay P 90,000 cash, P 60,000 a the end of 2 years and a sequence of 6 annual payments starting with one at the end of 4 years, to discharge all his liabilities as to the principal and interest at 7% compounded annually. Find the annual payment which must be made for 6 years.

a civil engineering student borrowed P 2,000 to meet college expenses during his senior year. He promised to repay the loan with interest at 4.5% in the equal semi-annual installments, the first payment to be made 3 years after the date of the loan. How much will this payment be?

A housewife bought a brand new washing machine costing P 12,000 if paid in cash. However, she can purchase it on installment basis to be paid within 5 years. If money is worth 8% compounded annually, what is her yearly amortization if all payments are to be made at the beginning of each day?

Engr. Capillanes plans to purchase a new business costing P 1,000,000. He can raise the building by issuing a 10%, 20 yeasr old board that will pay P 150,000 interest per year and repay the fac e amount at maturity. Instead of buying the new house, the firt paymen due one year from now. The building has an expected life of 20 years. If interest change for leasing is 12%, which is more favorable for Engr. Capillanes, borrow and buy or lease.

Two years ago, the rental for the use of equipment and facilities as paid 5 years in advance, with option to renew the another year by payment of P15,000 annually at the start of each year for the renewal period. Now the lesson asks lessee if it could be possible to repay the rental that will be paid annually in the renewed 5 years period. If the lessee will consider the request, what would be the fair prepayment to be made to the lesson if interest is now figured is now figured at 8%.

Net Builders plans to construct an additional building at the end of 10 years for an estimated amount of P5,000,000. To accumulate the amount, it will have equal year end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building that originally intended to estimated cost of P8,000,000. What should be the annual deposit for the last 5 years.