A. How much is the amount of the loan? B. How much is the payment on the first period? C. For the second payment, how much goes to pay the interest? D. For the second payment, how much goes to pay the principal? E. How much is the outstanding balance after the 4 payment?
A. How much is the amount of the loan? B. How much is the payment on the first period? C. For the second payment, how much goes to pay the interest? D. For the second payment, how much goes to pay the principal? E. How much is the outstanding balance after the 4 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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Concept explainers
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.
Question
4.) Study the amortization schedule and fill in the blanks. A loan amounting to P100,000 is to be paid annually for 4 years with an interest rate of 10% per annum. The annual amortization is ₱31,547.08 of payment.
Transcribed Image Text:Period
Regular
Payment
Interest
Principal
Component of
Payment
Outstanding
Component of
Balance
Payment
1
В
10,000
21,547.08
78,452.92
31,547.08
C
54,751.13
3
31,547.08
5,475.11
2,887.92
26,071.97
28,679.16
4
31,547.08
28,679.16
Totals
A. How much is the amount of the loan?
B. How much is the payment on the first period?"
C. For the second payment, how much goes to pay the interest?
D. For the second payment, how much goes to pay the principal?
E. How much is the outstanding balance after the 4 payment?
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