A. A newly married couple decided to buy a brand-new car. The net amount of loan is Php 500, 000. They plan to amortize the loan in monthly instalments for 3 years. If money is worth 12% convertible monthly? a. How much is the monthly installment? b. How much is the outstanding balance after the second payment? c. How much is the third payment goes to pay the interest? B. Suppose you want to buy a rent to own house worth P450,000. You made a down payment
A. A newly married couple decided to buy a brand-new car. The net amount of loan is Php 500, 000. They plan to amortize the loan in monthly instalments for 3 years. If money is worth 12% convertible monthly? a. How much is the monthly installment? b. How much is the outstanding balance after the second payment? c. How much is the third payment goes to pay the interest? B. Suppose you want to buy a rent to own house worth P450,000. You made a down payment
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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BUSINESS AND CONSUMER LOANS
Transcribed Image Text:Direction: Our everyday learning will be very useful if we apply it in real-life situations. Now, try
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A. A newly married couple decided to buy a brand-new car. The net amount of loan is Php 500,
000. They plan to amortize the loan in monthly instalments for 3 years. If money is worth 12%
convertible monthly?
a. How much is the monthly installment?
b. How much is the outstanding balance after the second payment?
c. How much is the third payment goes to pay the interest?
B. Suppose you want to buy a rent to own house worth P450,000.
made a down payment
of 15% of the purchase price and take a 25-year mortgage for the balance.
a. What is your down payment?
b. What is your mortgage amount?
c. What is the total interest charged over the life of the loan if your monthly payment is P2,200?
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