A businessman borrowed P100, 000 from a loan shark in order to start a business in Jan 1, 2000. He thenmade a partial payment of 20,000 on Jan 1, 2004. After he made the initial payment they agreed he wouldpay the remaining balance would be paid in two payments made in Jan 1, 2006 and on Jan 1, 2010 inwhich the payment in 2010 would be 100% higher than the payment on 2006. If the interest rate is 15%,what is the amount of each payment? Draw Cashflow diagram

A businessman borrowed P100, 000 from a loan shark in order to start a business in Jan 1, 2000. He thenmade a partial payment of 20,000 on Jan 1, 2004. After he made the initial payment they agreed he wouldpay the remaining balance would be paid in two payments made in Jan 1, 2006 and on Jan 1, 2010 inwhich the payment in 2010 would be 100% higher than the payment on 2006. If the interest rate is 15%,what is the amount of each payment? Draw Cashflow diagram

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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