Directions/Instructions: Read, analyze, and understand each problem set.

Your solution should have the following:

Construct a time diagram

Write the given

Solve other variables needed to solve the main problem

Write the formula

Substitute the given to the

formula

Make your conclusion

5. The buyer of a car initially pays P150,000 cash and 12,000 every month for 5

years. If money is 10%

compounded quarterly, how much is the cash price of the

car? Cash Price - Down Payment Present Value of the Annuity