A loan for a machine shop costs P60,000 if paid in cash. On the installment plan, a purchaser should pay P20,000 down payment and 10 quarterly installments, the first due at the end of the first quarter after purchase. If money is worth r% compounded quarterly same as the rate of interest 8.24% compounded annually. Find the quarterly installment and construct an amortization schedule.

To solve this problem, we need to calculate the quarterly installment and construct an amortization schedule based on the loan details provided. Here's the step-by-step breakdown:

### Step 1: Identify the given data
- **Cost of the machine in cash**: P60,000
- **Down payment**: P20,000
- **Number of installments**: 10 quarterly installments
- **Interest rate**: 8.24% compounded annually
- **Installments begin**: At the end of the first quarter after purchase

Since the problem mentions that the rate of interest is compounded quarterly, we need to convert the annual interest rate to a quarterly interest rate.

### Step 2: Convert the interest rate from annual to quarterly
The formula to convert an annual interest rate to a quarterly interest rate is:

\[
i = \left( 1 + \frac{r_{\

A loan for a machine shop costs P60,000 if paid in cash. On the installment plan, a purchaser should pay P20,000 down payment and 10 quarterly installments, the first due at the end of the first quarter after purchase. If money is worth r% compounded quarterly, the rate of interest is 8.24% compounded annually. Find the quarterly installment and construct an amortization schedule.

Learn how to calculate the quarterly installment for a P60,000 machine loan with a P20,000 down payment and 8.24% annual interest compounded quarterly. This guide explains the interest rate conversion, installment formula, and provides a step-by-step amortization schedule. Ideal for finance or mathematics students.

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