Activity 2: Problem SolvingSolve the following problems completely:1. Gabby is paying P 1,000 monthly for the payment of his loan for 2 years now.At the moment, he still has 6 remaining payments. How much is the outstandingnow if i12 = 0.06?2. A consumer loan has a scheduled payment of P 2,000 every quarter for 3 years.If money is worth 9% compounded quarterly, how much of the 5 payment goesto pay the interest?.3. Mr. Bainto has a loan that is to be amortized by paying monthly paymentsof P 3,200 for 1 year. After paying for 6 months, he decided to pay off the loan.How much of the 6 payment goes to pay the principal if money is worth12% compounded monthly?amounting to

1) Monthly payment (M) = P 1000 Number of payments (n) = 24 r = 6% per annum = 0.5% per month Let A…

Answered: 1. Gabby is paying P 1,000 monthly for…

1. Gabby is paying P 1,000 monthly for the payment of his loan for 2 years now. At the moment, he still has 6 remaining payments. How much is the outstanding now if i12 = 0.06?

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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Question

Activity 2: Problem Solving
Solve the following problems completely:
1. Gabby is paying P 1,000 monthly for the payment of his loan for 2 years now.
At the moment, he still has 6 remaining payments. How much is the outstanding
now if i12 = 0.06?
2. A consumer loan has a scheduled payment of P 2,000 every quarter for 3 years.
If money is worth 9% compounded quarterly, how much of the 5 payment goes
to pay the interest?.
3. Mr. Bainto has a loan that is to be amortized by paying monthly payments
of P 3,200 for 1 year. After paying for 6 months, he decided to pay off the loan.
How much of the 6 payment goes to pay the principal if money is worth
12% compounded monthly?
amounting to

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