Final answer:
To find the amount and present value of a quarterly payment of P1,500 for 6 years at a 6% interest rate compounded quarterly, use the formulas for future value and present value of an annuity.
Step-by-step explanation:
To find the amount and present value of P1,500 payable every three months for 6 years with a 6% interest rate compounded quarterly, we can use the formula for the future value of an annuity:
FV = P * [(1 + r)^n - 1] / r
Where FV is the future value, P is the payment amount, r is the interest rate per period, and n is the number of periods.
Plugging in the values, we have:
FV = 1,500 * [(1 + 0.06/4)^(4*6) - 1] / (0.06/4)
Solving this equation gives us the future value, which represents the total amount at the end of the 6-year period. To find the present value, we divide the future value by (1 + r)^n:
PV = FV / (1 + r)^n
Calculating PV, we get the present value of the annuity.