What was the cash price of the lot

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Reference no: EM131984696

M purchased a small lot in subdivision paying $200,000 downpayment and promising to pay $15,000 every 3 months for the next 10 years, 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 than due?

d) If M missed the first 10 payments, what must he pay when the 11th payment is due to discharge his entire indebtedness?

Reference no: EM131984696

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