Solve the following problems using the concept of amortizatione. Prepare an amortization schedule for the present value of the loan after making the down payment 2. ABC Realty sold a piece of land for P250,000. A down payment of P50,000 wasmade and the remainder is to be paid in equal semiannual installments, the firstdue 6 months after the date of sale. The interest is 8% compoundedsemiannually and the debt is to be amortized in 5 years.

Present Value of Loan = Present Value Factor x Cash Flow during the period

Answered: ABC Realty sold a piece of land for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Solve the following problems using the concept of amortization e. Prepare an amortization schedule for the present value of the loan after making the down payment

2. ABC Realty sold a piece of land for P250,000. A down payment of P50,000 was
made and the remainder is to be paid in equal semiannual installments, the first
due 6 months after the date of sale. The interest is 8% compounded
semiannually and the debt is to be amortized in 5 years.

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