en problem. Problem: Mrs Talla obtained a loan of P200,000. She has to repay the loan by equal payments at the end of every six months for 5 years at 2% interest compounded semi-annually. Find the periodic payment. (Pre
en problem. Problem: Mrs Talla obtained a loan of P200,000. She has to repay the loan by equal payments at the end of every six months for 5 years at 2% interest compounded semi-annually. Find the periodic payment. (Pre
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 1Q
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Answer the given problem.
Problem:
Mrs Talla obtained a loan of P200,000. She has to repay the loan by equal payments at the end of every six months for 5 years at 2% interest compounded semi-annually. Find the periodic payment. (Prepare an amortization schedule)
The given picture is only a sample of amortization schedule please refer to it. Thank you.
Transcribed Image Text:The Amortization Schedule
Period
Periodic payment
semi-annually
Interest at 10% due
Outstanding
Principal
ColE ColD
Repayments
*We use i=Prt
ColB-ColC
(A)
(B)
(D)
(E)
50,000.00
1
9 850.87
2 500.00
7 350.87
42 649.13
2
9 850.87
2 132.46
7718.14
34 930.72
3
9 850.87
1 746.54
8 104.33
26 826.39
9 850.87
1 341.31
8 509.56
18 316.84
9 850.87
915.84
8 935.03
9 381.81
9 850.87
469.09
9 381.81
Total
59 105.22
9 105.24
50 000.00
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