A man borrowed Php 120,000 and promised to pay annually for 5 years. The payment starts at "X" pesos. The man intends to increase his payments by Php 5,000 at the end of each successive year. If the interest rate is 8% compounded annually, how much will the first payment be? If the man decides to pay annually with 8 equal payments with the first payment to be made after 4 years, what will be the amount of the annual payment? Construct the cash flow diagram

A man borrowed Php 120,000 and promised to pay annually for 5 years. The payment starts at "X" pesos. The man intends to increase his payments by Php 5,000 at the end of each successive year. If the interest rate is 8% compounded annually, how much will the first payment be? If the man decides to pay annually with 8 equal payments with the first payment to be made after 4 years, what will be the amount of the annual payment? Construct the cash flow 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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