1. A mother borrowed 200,000 with 2% interest monthly and promised to pay the amount by 30 equal monthly installments which all start at the beginning of each period. determine the monthly payment. (Show solution) a. 7,855 b. 5,875 c. 5,587 d.8,755
1. A mother borrowed 200,000 with 2% interest monthly and promised to pay the amount by 30 equal monthly installments which all start at the beginning of each period. determine the monthly payment. (Show solution) a. 7,855 b. 5,875 c. 5,587 d.8,755
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Question
1. A mother borrowed 200,000 with 2% interest monthly and promised to pay the amount by 30 equal monthly installments which all start at the beginning of each period. determine the monthly payment. (Show solution)
a. 7,855
b. 5,875
c. 5,587
d.8,755
2. A car was baught on an installment basis with a monthly installment of 30,000 for 60 months. If the rate is 1.2% compounded annually, calculate the cash prize of the car. (Show solution)
a. 1,396,619
b. 1,693,619
c. 1,379,619
d. 1,367,634
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