A businessman borrowed P 50,000 today from bank with interest rate of 8% compounded quarterly repayable in equal quarterly installment for 10 years. Payments made at the end of each quarter.  Find the quarterly payment.


2. X Corp would like to borrow from Y Corp. The risk free rate is 6% with current inflation rate of 2%. In the following year the inflation rate will increase by 1%. How much is the interest rate that Y  should impose to X?


3. A 1,000 Treasury bills with 91 days period can be purchased at 995. What is the annualized discount rate?