1. CM Company borrowed Php2 000 000 from a bank on June 30, 2015. The loan has an annualinterest rate of 10% and the principal is payable at the end of every quarter amounting toPhp250 000. The first quarterly payment will be on September 30, 2015. Prepare anamortization schedule for 2015 until the loan is fully paid on June 30, 2017.How much interestexpense is incurred in 2015, 2016 and 2017 with respect to this loan?Page 4 of 62. ESD borrowed Php5 million from a bank on September 30, 2015. The loan principal is payableevery six months starting March 31, 2016 at the rate of Php1 000 000. The loan has an annualinterest rate of 10%. Determine the interest expense related to this loan in 2015, 2016, 2017,and 2018.

Amortization table is shown below

Answered: 1. CM Company borrowed Php2 000 000…

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

Section: Chapter Questions

Problem 1PS

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see the attached picture
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