Problem 13. M purchased a small lot subdivision, paying P200,000 down and promising to pay P15,000
every 3 months for the next 10 years. The seller figured interest at 12% compounded quarterly.
a. What was the cash price of the lot?
b. If M missed the first 12 payments, what must he pay at the time the 13 th is due to bring himself
up to date?
c. After making 8 payments, M wished to discharge his remaining indebtedness by a single
payment at the time when the 9 th regular payment was due. What must he pay in addition to
the regular payment then due?
d. If M missed the first 10 payments, what must he pay when the 11 th payment is due to discharge
his entire indebtedness?
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