Question
Pedro Paramo is considering to buy a Mini Cooper in 4 years from now, after some economic predictions, he estimates the price of the car
Pedro Paramo is considering to buy a Mini Cooper in 4 years from now, after some economic predictions, he estimates the price of the car in $750,000 Mexican pesos. Pedro wants to know the amount he must deposit each month at 1% (monthly rate) to accumulate $650,000 pesos at the end of 4 year, to be ready to buy the car. At the end of the second year, he decided, instead of buying a new car, to buy an Apartment, with a cost of $4,000,000. The amount accumulated at end of second year, applied it as a down payment, for the rest, he asked a loan which will repay the principal plus the interests in 11 years with monthly payments. You have asked to determine the amortization table (equal payments, at 2% per month compounded each 15 days) considering in year 8, he will repay additional $550,000 to loan principal..
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