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?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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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