Question

M purchases a house, paying ₹5,00,000 as down payment and promising to pay ₹20,000 every quarter
for the next 10 years. The seller figured interest at 6% compounded quarterly.
() What was the cash value of the house?
() If M missed the first 12 payments, what must she pay at the time the 13th payment is due to bring
herself up to date?
() After making 8 payments, M wished to discharge her remaining indebtedness by a single payment
at the time when the 9th regular payment was due. What must she pay in addition to the regular
payment then due?
() If M missed the first 10 payments, what must she pay when the 11th payment is due, in order to
discharge her entire indebtedness?

Answer 1

Answer:

M purchases a house, paying ₹5,00,000 as down payment and promising to pay ₹20,000 every quarter

for the next 10 years. The seller figured interest at 6% compounded quarterly.

() What was the cash value of the house?

() If M missed the first 12 payments, what must she pay at the time the 13th payment is due to bring

herself up to date?

() After making 8 payments, M wished to discharge her remaining indebtedness by a single payment

at the time when the 9th regular payment was due. What must she pay in addition to the regular

payment then due?

() If M missed the first 10 payments, what must she pay when the 11th payment is due, in order to

discharge her entire indebtedness?

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