1. Amortization Payment (a)Cedric purchased a new fishing boat for P130,000. He made a P20,000 down payment, and financed the balance at his bank for 7 years. What amortization payments are required every 3 months, at 16% interest, to pay off the boat loan? b.Cameron Manufacturing recently purchased a new computer system for P150,000. What amortization payment is required each month, at 12% interest, to pay off this obligation in 8 years? c. The Clintons bought a home for P12,050,000. After a 15% down payment, the balance is financed at 8% interest for 9 years. (i) What equal quarterly payments will be required to amortize this mortgage loan? (ii) What is the total amount of interest the Clintons will pay on the loan?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
1. Amortization Payment
(a)Cedric purchased a new fishing boat for P130,000. He made a P20,000 down payment, and financed the balance at his bank for 7 years. What amortization payments are required every 3 months, at 16% interest, to pay off the boat loan?
b.Cameron Manufacturing recently purchased a new computer system for P150,000. What amortization payment is required each month, at 12% interest, to pay off this obligation in 8 years?
c. The Clintons bought a home for P12,050,000. After a 15% down payment, the balance is financed at 8% interest for 9 years.
(i) What equal quarterly payments will be required to amortize this mortgage loan? (ii) What is the total amount of interest the Clintons will pay on the loan?
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