A man bought an equipment costing P60, 000 payable in 12 triannual payments, each installment payable at the
beginning of each period. The rate of interest is 24% compounded triannually. What is the amount of each
payment?
3. Then, tabulate your answers on Julia. Use the Present Worth Formula and the Future Worth Formula. Show that sum would be equal to 0. ->
meaning they would balance out.
Example:
Present Value
Future Value
Period (in years)
In Flow
Out Flow
Total
Remarks (if any)
(n =0)
(n=1.5)
0
-500
-500
-500
-550
0.25
1000
-500
500
500
0.5
1000
-500
500
0.75
1000
1000
1
1000
1000
1.25
1000
1000
1.5
1000
1000
Sum =
Sum =