a. Juan bought a car with a cash value of P14,000 on the installment plan under the following terms:
P4,000 cash upon delivery and the balance payable in 12 equal monthly payments, each payment combining an amortization installment and 6% on the previously unpaid balance. Solve for his monthly payment.
b. At the end of 8 months, he was forced to sell the car in order to pay a P7,000 debt. At what price must he sell his car so that he can completely pay the car and also pay his P7,000 debt?