How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth 5 1/8% compounded quarterly for 20 years? -tm 1-(1+) 1-(1+ 0.042)-2-4 - P = R- 3000- P22 904.57 0.042 m cash price = down payment + Present value cash price = 2500 + 22904.57 P25 404.57 tm = 2 * 4 = 8 Period (n-tm) Regular Payment (R) Interest (i=j/m) Repayment of the Loan Outstanding Balance 22904.57 1 3000 240.50 2759.50 20145.07 2. 3000 211.52 2788.48 17356.59 3 3000 182.24 2817.76 14538.84 4 3000 152.66 2847.34 11691.49 3000 122.76 2877.24 8814.25 3000 92.55 2907.45 5906.80 3000 62.02 2937.98 2968.82 3000 31.17 2968.83 0.00
How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth 5 1/8% compounded quarterly for 20 years? -tm 1-(1+) 1-(1+ 0.042)-2-4 - P = R- 3000- P22 904.57 0.042 m cash price = down payment + Present value cash price = 2500 + 22904.57 P25 404.57 tm = 2 * 4 = 8 Period (n-tm) Regular Payment (R) Interest (i=j/m) Repayment of the Loan Outstanding Balance 22904.57 1 3000 240.50 2759.50 20145.07 2. 3000 211.52 2788.48 17356.59 3 3000 182.24 2817.76 14538.84 4 3000 152.66 2847.34 11691.49 3000 122.76 2877.24 8814.25 3000 92.55 2907.45 5906.80 3000 62.02 2937.98 2968.82 3000 31.17 2968.83 0.00
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
Related questions
Question
The other photo is the example of the format of the supposed answer (solution and Excel). Thank you so much
Transcribed Image Text:How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth 5
1/8% compounded quarterly for 20 years?
Transcribed Image Text:-tm
1-(1+)
1-(1+
0.042)-2-4
- P = R-
3000-
P22 904.57
0.042
m
cash price = down payment + Present value
cash price = 2500 + 22904.57 P25 404.57
tm = 2 * 4 = 8
Period (n-tm) Regular Payment (R) Interest (i=j/m) Repayment of the Loan Outstanding Balance
22904.57
1
3000
240.50
2759.50
20145.07
2.
3000
211.52
2788.48
17356.59
3
3000
182.24
2817.76
14538.84
4
3000
152.66
2847.34
11691.49
3000
122.76
2877.24
8814.25
3000
92.55
2907.45
5906.80
3000
62.02
2937.98
2968.82
3000
31.17
2968.83
0.00
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 6 steps with 8 images
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.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education