intenance cost of an equipment is P20000 for 2 years, P40000 at the end of 4 years and P80000 at the end of 8 years. Compute the semi-annual amount that will be set aside for this equipment. Money worth 10% compounded annually. (Ans: ₱7,426.19) Pls show the given and the solution not excel

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.