1. A man loaned P60,000 today at 8% interest to be paid at P9,000 annually for 6 years. What is the amount that needs to be paid at the end of the following year to pay off the loan? Show the cash flow diagram. State your reference period in the solution as reflected in the diagram.
2. A machine was bought at a cost of P115,000 that can be paid in 24 monthly payments having every payment to be done at the beginning of each period. What is the amount of each payment if the interest rate is 1.5% per month? Show the cash flow diagram. State your reference period in the solution as reflected in the diagram
3. A man loans 100,000 from a bank with interest at 8% compounded semi-annually. He then agrees to pay 8 equal quarterly payments to settle the loan, the first being due at the end of the 6th quarter. Compute for the quarterly payment. Show the cash flow diagram. State your reference period in the solution as reflected in the diagram

• solve each question
• STATE THE GIVEN, REQUIRED AND SOLUTION
• DRAW CASH FLAW DIAGRAM FOR EACH QUESTION

Answer rating: 100% (QA)

Sure lets solve each question step by step stating the given required and solution for each one and also draw a cash flow diagram for clarity Question 1 Given Principal amount loan P60000 Interest rat... View the full answer