Answer:
The Value of Payments is P18,557.15
Step-by-step explanation:
The quarterly payment is an annuity payment.
Use the following formula to calculate the present value of the payments.
PV of Annuity = Annuity Payment x ( 1 - ( 1 + interest rate )^-Numbers of periods ) / Interest rates
Where
Annuity Payment = Quarterly payment = P1,300
Interest rate = 5.12% x 3/12 = 1.375%
Numbers of periods = 4 years x 12/3 = 16 quarters
PV of Annuity = Value of Payments = ?
Placing values in the formula
Value of Payments = P1,300 x ( 1 - ( 1 + 1.375% )^-16 ) / 1.375%
Value of Payments = P18,557.15
