If you are planning to apply for a personal loan and borrow PhP 30,000 and repay the principal and interest for an agreed length of time of 3 years, a. How much monthly payment is needed for each bank offer? b. How much interest would you pay for 3 years for each bank offer? c. Which is the best option for you among the given choices below if you are to pay monthly for 3 years? Justify your answer and apply what you have learned on simple and compound interest. Bank (Personal Loan) Monthly Interest Rate A 1.3% 1.89% 1.22% B C D E 1.5% 1.25%
If you are planning to apply for a personal loan and borrow PhP 30,000 and repay the principal and interest for an agreed length of time of 3 years, a. How much monthly payment is needed for each bank offer? b. How much interest would you pay for 3 years for each bank offer? c. Which is the best option for you among the given choices below if you are to pay monthly for 3 years? Justify your answer and apply what you have learned on simple and compound interest. Bank (Personal Loan) Monthly Interest Rate A 1.3% 1.89% 1.22% B C D E 1.5% 1.25%
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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Question
Transcribed Image Text:II. TERMINAL OUTPUT.
If you have short-term money needs, a personal loan can be an alternative. With no collateral
needed, you can apply for a personal loan at any bank in the Philippines.
What is a personal loan? A personal loan is a loan for any personal expense. Unlike a housing
loan or a car loan, you can use a personal cash loan for anything you want. May it be for tuition
fees, travel expenses, or anything else.
When you apply for a personal loan, you enter into an agreement with the lender (usually the
bank) and promise to repay the loan over an agreed length of time.
To repay your personal loan, you make monthly payments for the loan tenure until you have
fully repaid both the principal and interest of the loan.
Most banks in the Philippines offer attractive interest rates for their personal loans. While
standard monthly interest rates are around 1.5% to 2%.
Task
If you are planning to apply for a personal loan and borrow PhP 30,000 and repay the principal
and interest for an agreed length of time of 3 years,
a. How much monthly payment is needed for each bank offer?
b. How much interest would you pay for 3 years for each bank offer?
c. Which is the best option for you among the given choices below if you are to pay monthly
for 3 years?
Justify your answer and apply what you have learned on simple and compound interest.
Bank (Personal Loan) Monthly Interest Rate
A
B
с
D
E
1.3%
1.89%
https://www.imoney.ph/personal-loan
1.22%
1.5%
1.25%
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