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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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