document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1193608>Question 1193608</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Find the cash price of a property if it is bought for ₱150,000 <BR>\n" );
document.write( "downpayment and payments of ₱15,000 at the end of every 3 months <BR>\n" );
document.write( "for 7 years if money is worth 10% compounded quarterly. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #848634 by </B><A HREF=/tutors/aboutme.mpl?userid=yurtman><B>yurtman(42)</B></A><img src=\"/images/stars/stars-07.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=yurtman><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=848634\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> **1. Determine the Quarterly Interest Rate**\r<BR>\n" );
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document.write( "* Annual Interest Rate: 10%<BR>\n" );
document.write( "* Quarterly Interest Rate: 10% / 4 = 2.5% or 0.025\r<BR>\n" );
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document.write( "**2. Calculate the Number of Quarterly Payments**\r<BR>\n" );
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document.write( "* Number of Years: 7 years<BR>\n" );
document.write( "* Number of Quarterly Payments: 7 years * 4 quarters/year = 28 payments\r<BR>\n" );
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document.write( "**3. Calculate the Present Value of the Quarterly Payments**\r<BR>\n" );
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document.write( "* **Use the Present Value of an Ordinary Annuity Formula:**\r<BR>\n" );
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document.write( "   Present Value = Payment * [(1 - (1 + r)^-n) / r] <BR>\n" );
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document.write( "   Where:<BR>\n" );
document.write( "     * Payment = ₱15,000<BR>\n" );
document.write( "     * r = Quarterly interest rate (0.025)<BR>\n" );
document.write( "     * n = Number of payments (28)\r<BR>\n" );
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document.write( "* **Calculate:**<BR>\n" );
document.write( "   Present Value = ₱15,000 * [(1 - (1 + 0.025)^-28) / 0.025] <BR>\n" );
document.write( "   Present Value ≈ ₱15,000 * 19.9635 <BR>\n" );
document.write( "   Present Value ≈ ₱299,452.50\r<BR>\n" );
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document.write( "**4. Calculate the Cash Price of the Property**\r<BR>\n" );
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document.write( "* Cash Price = Down Payment + Present Value of Payments<BR>\n" );
document.write( "* Cash Price = ₱150,000 + ₱299,452.50<BR>\n" );
document.write( "* Cash Price = ₱449,452.50\r<BR>\n" );
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document.write( "**Therefore, the cash price of the property is approximately ₱449,452.50.**<BR>\n" );
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