Jones Corporation borrowed P80,000 from Brown Corporation on Jan 1,1993 and P12,000 on Jan 1, 1995. Jones Corporation made a partial payment of P10,000 on Jan 1, 1996. It was agreed that the balance of the loan will be amortized by two payments, one on Jan. 1, 1997 and the other on Jan. 1, 1998, the second being 60% larger than the first. If the interest rate is 12%, what is the amount of each payment?

Jones Corporation borrowed P80,000 from Brown Corporation on Jan 1,1993 and P12,000 on Jan 1, 1995. Jones Corporation made a partial payment of P10,000 on Jan 1, 1996. It was agreed that the balance of the loan will be amortized by two payments, one on Jan. 1, 1997 and the other on Jan. 1, 1998, the second being 60% larger than the first. If the interest rate is 12%, what is the amount of each payment?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please include the cash-flow diagram as well. Thank you
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