ANSWER LETTER D ONLY M purchased a small lot in a 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...

ANSWER LETTER D ONLY

M purchased a small lot in a 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 13th 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 9th 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 11th payment is due to discharge his entire indebtedness?