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Company A borrows P2,000,000 from Bank at 12% interest to be paid at the end of each year for 15 years. Find for the annual total payments under (a) equal annual amortization (b) equal principal payment methods. Construct a complete amortization schedule (as shown below) for each scheme.   Year Outstanding Balance Principal Payment Interest Payment Total Payment 0         1         2         3         4         5         6         7         8         9         10         11         12         13         14         15

Company A borrows P2,000,000 from Bank at 12% interest to be paid at the end of each year for 15 years. Find for the annual total payments under (a) equal annual amortization (b) equal principal payment methods. Construct a complete amortization schedule (as shown below) for each scheme.   Year Outstanding Balance Principal Payment Interest Payment Total Payment 0         1         2         3         4         5         6         7         8         9         10         11         12         13         14         15

Essentials Of Investments
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
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Company A borrows P2,000,000 from Bank at 12% interest to be paid at the end of each year for 15 years. Find for the annual total payments under

(a) equal annual amortization

(b) equal principal payment methods.

Construct a complete
amortization schedule (as shown below) for each scheme.

 

Year Outstanding Balance Principal Payment Interest Payment Total Payment
0        
1        
2        
3        
4        
5        
6        
7        
8        
9        
10        
11        
12        
13        
14        
15        

Considering the given information, find for the annual total payments under
a. equal annual amortization

b. equal principal payment methods if a 3-year grace
period is charged on both principal and interest.

Construct a complete amortization schedule for each scheme.

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