A machinery supplier is offering a certain machinery on a 10% down payment and the balance payable in equal end of the year payments without interest for 2 years. Under this arrangement, the price is...

A machinery supplier is offering a certain machinery on a 10% down payment
and the balance payable in equal end of the year payments without interest for 2
years. Under this arrangement, the price is pegged to be P250,000. However, for
cash purchase, the machine would only cost P195,000. What is the equivalent
interest rate that is being charged on the 2 year payment plant if interest is
compounded quarterly?