Directions: Read the problem carefully and solve what is being asked using partial payments on loan. Problem: Jay wants to have a new car but he doesn't have enough money so he decided to make a car loan to finance his buying a new car. The Piwong Bank requires 20% of the amount of the car as the down payment. If Jay is going to buy a brand -new car worth P700,000.00, then he has to make a down payment of P140,000.00 and apply for a loan for the excess of P560,000.00. If Jay is going to pay the loan for 3 years with the simple interest rate of 4.79%, a. How much is the maturity value of the car? b. How much is the monthly installment? c. What is the total interest of the car loan?
Directions: Read the problem carefully and solve what is being asked using partial payments on loan. Problem: Jay wants to have a new car but he doesn't have enough money so he decided to make a car loan to finance his buying a new car. The Piwong Bank requires 20% of the amount of the car as the down payment. If Jay is going to buy a brand -new car worth P700,000.00, then he has to make a down payment of P140,000.00 and apply for a loan for the excess of P560,000.00. If Jay is going to pay the loan for 3 years with the simple interest rate of 4.79%, a. How much is the maturity value of the car? b. How much is the monthly installment? c. What is the total interest of the car loan?
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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Transcribed Image Text:Directions: Read the problem carefully and solve what is being asked using partial payments on
loan.
Problem: Jay wants to have a new car but he doesn't have enough money so he decided to make
a car loan to finance his buying a new car. The Piwong Bank requires 20% of the amount of the
car as the down payment. If Jay is going to buy a brand -new car worth P700,000.00, then he has
to make a down payment of P140,000.00 and apply for a loan for the excess of P560,000.00. If
Jay is going to pay the loan for 3 years with the simple interest rate of 4.79%,
a. How much is the maturity value of the car?
b. How much is the monthly installment?
c. What is the total interest of the car loan?
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