The buyer of a certain machine may pay either Php 20,000 cash down payment and Php 20,000 annually for the next 6 years, or pay Php 35,000 cash and Php 20,000 annually for the next 5 years. If money...

4

Extracted text: The buyer of a certain machine may pay either Php 20,000 cash down payment and Php 20,000 annually for the next 6 years, or pay Php 35,000 cash and Php 20,000 annually for the next 5 years. If money is worth 12% compounded annually, which method of payment is better for the buyer and by how much?