An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6% compounded quarterly, find: c. the remaining liability just after the 15th payment d. how much of the 15th payment interests, and how much goes to the principal?

An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6% compounded quarterly, find: c. the remaining liability just after the 15th payment d. how much of the 15th payment interests, and how much goes to the principal?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Related questions

Q: a. The OP at the end of 3 years. b. OP after the 45th payment. c. Estimate how many payments…

A: Outstanding payment is the balance amount of debt, left after a certain period. The outstanding…

Q: An obligation will be amortized by quarterly payments of P670 for 10 years, If interest is at 6%…

A: Quarterly payment (P) = P 670 Period = 10 Years Total number of quarterly payments = 10*4 = 40…

Q: loan is to be amortized by equal payments of P5,000 at the end of each six months for 10 years. If…

A: Using excel PV function to calculate the present value of loan

Q: A debt of 8,800 with interest at 5% payable semi annually will be discharged by payment of 1,200 at…

A: Here, Debt Amount is 8,800 Interest Rate is 5% Compounding period is Semi-Annual Payment Duration is…

Q: A loan of $10200 is to be amortized with quarterly payments over five years. The interest on the…

A: A bond is said to be amortized if its principal (face value) on the debt as well as its interest…

Q: Find the semiannual payments to repay a debt of P100,000 in 6 equal payments with interest at 10%…

A: A loan is a debt amount borrowed by one person from another person at a predetermined financial…

Q: A debt of $1908 with interest at 6.3% compounded annually is to be repaid by equal payments at the…

A: Solution:- When a loan is taken, it is to be repaid in lump sum or in installments. If it is paid in…

Q: Determine the periodic payment. Then construct the amortization schedule.

A: As the loan is paid quarterly, the number of periods in a tensure of 1.5 years or 18 months = 18/3 =…

Q: f a Condura Ref. costs P 24,830 will have an interest of P 2505 monthly that is payable for a year,…

A: The rate of interest is the basis for the calculation of monthly, annual, or quarterly interest. Any…

Q: As debt payment, P315,000 is due in 4 years and 7 months. If the debtor wishes to repay the debt…

A: Future value refers to the amount to be paid or received on a future date. The future value takes…

Q: Suppose a borrower makes a $100,000 loan with annual payments at a 10 percent rate and a 10-year…

A: Annuity: An annuity is the series of payments which is received or paid for a fixed period of…

Q: Find the semiannual payments to repay a debt of P100,000 in 5 equal payments with interest at 12%…

A: An amortization schedule is defined as the table, which includes the complete detail of periodic…

Q: A loan of P12, 500 is to be repaid with equal quarterly payments for one year with an interest of 6%…

A: Amortization table is a schedule which shows periodic lease or loan payments. The periodic payment…

Q: A financial obligation requires payments of $200 today, $250 in three years, and $550 in five years.…

A: The concept of TVM states that the money earned earlier has more value than the same amount earned…

Q: A loan of P12, 500 is to be repaid with equal quarterly payments for one year with an interest of 6%…

A: In this question Quaterly payment is to be find out and amortisation schedule which lays out all the…

Q: A loan of $10200 is to be amortized with quarterly payments over five years. The interest on the…

A: Principal Amount = p = $10,200Compound = Quarterly = 4Time = t = 5 * 4 = 20Interest rate = r = 7.5 /…

Q: An obligation will be amortized by quarterly payments of P670 for 10 years. If interest is at 6%…

A: Quarterly payment (Q) = P 670 Duration (n) = 10 years = 40 payments r = 6% per annum = 1.5% per…

Q: A man owes P12,OOO with interest at 7% payable semi-annually. What equal payments at the beginning…

A: Loan amount (PV) = P 12,000 Annual interest rate = 7% Semi annual interest rate (R) = 7%/2 = 3.5%…

Q: A debt of 4,400 with interest at 2.5% payable semi annually will be discharged by payment of 600 at…

A: Given information: Debt : 4,400 Interest rate : 2.5% Payments : 600

Q: A loan of $10200 is to be amortized with quarterly payments over five years. The interest on the…

A: Amortization of a loan refers to the process of gradually paying off the loan debt over a specific…

Q: Determine the periodic payment.

A: Periodic Payment = PV x r / [1 - {1 / (1 + r)^n}] Here, PV = Present Value i.e. P100000 r = Periodic…

Q: Suppose you borrow $70,000 at 5.25% annual interest to be repaid with a fully amortized plan over 14…

A: Annual payment (P) on a loan (PV) of $70,000 at an interest rate ( r ) of 5.25% and for 14 years (n)…

Q: Show your complete solution in a word file. A debt of P350,000 is to be amortized by 6 equal…

A: AMORTIZATION SCHEDULED A loan amortization schedule is a table that shows each periodic loan…

Q: An obligation will be amortized by quarterly payments of P670 for 10 years, If interest is at 6%…

A: Quarterly payment (P) = P 670 Period = 10 Years Number of monthly payments (n) = 10*12 = 120…

Q: An obligation will be amortized by quarterly payments of P670 for 10 years. If interest is at 6%…

A: Let the obligation = L Quarterly payment = Q = P 670 n = 10 years = 40 quarters r = 6% per annum =…

Q: If the interest rate is 13% compunded semi-annually made on the account, and the obligations are…

A: Given Information: Interest rate - 13% compounded semi-annually Deposit - P13,521 Withdrawal -…

Q: a hypothetical financial instrument pays 10% annual interest permanently. It pays interest at the…

A: Here, Annual interest rate = 10% YTM = 12% monthly To Find: Part a. Macaulay duration =? Part b.…

Q: A P15,000 loan at 12% compounded quarterly is to be amortized every 3 months for 12 years. Find the…

A: Here, To Find: Quarterly payment =? Construction of amortization schedule =?

Q: An obligation of P25,000 with interest of 5% compounded semi-annually must be paid at the end of…

A: Compounding semi-annually means the compounding period is of 6 month. In this amount of principal…

Q: Find the semi-annual payment of a P15,000 debt to be amorlized by 5 equal payments at the end of…

A: Solution:- Given, Loan amount = PV = P15,000 Number of payments = n = 5 Interest rate = i = 15%/2…

Q: A debt of 8,800 with interest at 5% payable semi annually will be discharged by payment of 1,200 at…

A: The amortization schedule can be prepared as follows : Periods Beginning amount Payment Interest…

Question

An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6% compounded quarterly, find:

c. the remaining liability just after the 15th payment

d. how much of the 15th payment interests, and how much goes to the principal?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

If the interest rate is 13% compunded semi-annually made on the account, and the obligations are given below: Deposit of P13,521 at the end of 3 and a half years. Withdrawal of P20,812 at the end of 5 years. Semi-annual deposit of a perpetuity of P1,200 starting at the end of 6 and a half years. Determine the following: a.) Present value of all the obligations made on the account. b.) Additional amount of withdrawal at the end of 5 years to balance the cash flows. NOTE: DO NOT USE EXCEL
A man owes P12,OOO with interest at 7% payable semi-annually. What equal payments at the beginning of each 6 months for 5 years will discharge his debt? Construct an amortization schedule.
2. An amortized loan of P100,000 with an interest rate of 8% per annum will be paid quarterly for 1 ½ years. Determine the periodic payment.
2. Find the semiannual payments to repay a debt of P100,000 in 5 equal payments with interest at 12% compounded semiannually, the first of these payments to start one year after the loan is made. Construct an amortization schedule.
A debt of 4,400 with interest at 2.5% payable semi annually will be discharged by payment of 600 at the end of each 7 periods as long as necessary, with a final smaller payment of 7 periods after the last 600 is paid due to COVID19. How much will be the beginning amount after the last period? How much will be the final payment after the last period? How much will Be the interest after the last period? Give the amortization schedule containing the period, beginning amount, payment, interest, repayment and ending balance. Show the solution.
A debt of 8,800 with interest at 5% payable semi annually will be discharged by payment of 1,200 at the end of each 8 periods as long as necessary, with a final smaller payment of 8 periods after the last 1200 is paid due to COVID19. How much will be the beginning amount after the last period? How much will be the final payment after the last period? How much will ve the interest after the last period? Give the amortization schedule containing the period, beginning amount, payment, interest, repayment and ending balance. Show your solution, dont use excel
A debt of 8,800 with interest at 5% payable semi annually will be discharged by payment of 1,200 at the end of each 8 periods as long as necessary, with a final smaller payment of 8 periods after the last 1200 is paid due to COVID19. How much will be the beginning amount after the last period? How much will be the final payment after the last period? How much will ve the interest after the last period? Give the amortization schedule containing the period, beginning amount, payment, interest, repayment and ending balance.
a hypothetical financial instrument pays 10% annual interest permanently. It pays interest at the end of each month YTM is 12%. a. what is Macaulay duration of this financial instrument? b. what us modified duration of this financial instrument?
1. A loan of P12, 500 is to be repaid with equal quarterly payments for one year with an interest of 6% compounded quarterly. Find the quarterly payment and construct an amortization schedule.
If a Condura Ref. costs P 24,830 will have an interest of P 2505 monthly that is payable for a year, what will be its interest rate?
1. A debt of P3,500 is to be amortized by 6 equal semiannual payments with interest at 6%compounded semiannually. Find the periodic payment and construct on amortization schedule. 2. Monthly payments of P800 each are used to settle a loan for 8 months at 8% compounded monthly. Find the present value of the loan and construct an amortization table.
An amortized loan of P100,000 with an interest rate of 8% per annum will be paid quarterly for 1 and 1/2 years. Determine the periodic payment. Then construct the amortization schedule.