Final answer:
The cash price of the lot is approximately ₱373,768.32.
Step-by-step explanation:
To find the cash price of the lot, we need to calculate the present value of the monthly payments and the initial cash payment.
The formula to calculate the present value is: PV = PMT * [(1 - (1 + r)^-n) / r] + P
Where PV is the present value, PMT is the monthly payment, r is the interest rate per period, n is the total number of periods, and P is the initial cash payment.
In this case, the monthly payment (PMT) is ₱3630, the interest rate (r) is 8% per year, compounded monthly, and the total number of periods (n) is 10 years, or 120 months.
Let's calculate the present value:
PV = ₱3630 * [(1 - (1 + 0.08/12)^-120) / (0.08/12)] + ₱80,000
PV ≈ ₱3630 * 81.0449 + ₱80,000
PV ≈ ₱293,768.32 + ₱80,000
PV ≈ ₱373,768.32
Therefore, the cash price of the lot is approximately ₱373,768.32.