Label all final answers with the correct units, if applicable. Unless otherwise stated, use 4 decimal places for intermediate computations of interest rates (if needed) then round off final answers to two decimal places. For monetary amounts, use 2 decimal places even for intermediate computations. 5. Juan takes out a 3-year multi-purpose loan for P 200,000 from a loaning institution. The annual interest rate is 12.0% compounded monthly. a. Determine the monthly amortization for this loan. b. How much does he still owe after paying 6 installments? Show the table of diminishing balances as part of your solution. c. Due to the pandemic, the loaning institution offered a loan restructuring program in which a bor- rower's current loan balance can be recomputed with a reduced annual interest rate of 9.0%, with payment terms of up to 5 years. Juan decides to avail of this program. If he will pay off the remainder of his loan within 30 months, what will be his monthly installment under this restructured loan?
Label all final answers with the correct units, if applicable. Unless otherwise stated, use 4 decimal places for intermediate computations of interest rates (if needed) then round off final answers to two decimal places. For monetary amounts, use 2 decimal places even for intermediate computations. 5. Juan takes out a 3-year multi-purpose loan for P 200,000 from a loaning institution. The annual interest rate is 12.0% compounded monthly. a. Determine the monthly amortization for this loan. b. How much does he still owe after paying 6 installments? Show the table of diminishing balances as part of your solution. c. Due to the pandemic, the loaning institution offered a loan restructuring program in which a bor- rower's current loan balance can be recomputed with a reduced annual interest rate of 9.0%, with payment terms of up to 5 years. Juan decides to avail of this program. If he will pay off the remainder of his loan within 30 months, what will be his monthly installment under this restructured 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:Label all final answers with the correct
units, if applicable. Unless otherwise stated, use 4 decimal places for intermediate computations of
interest rates (if needed) then round off final answers to two decimal places. For monetary amounts,
use 2 decimal places even for intermediate computations.
5. Juan takes out a 3-year multi-purpose loan for P200,000 from a loaning institution. The annual interest
rate is 12.0% compounded monthly.
a. Determine the monthly amortization for this loan.
b. How much does he still owe after paying 6 installments? Show the table of diminishing balances as
part of your solution.
c. Due to the pandemic, the loaning institution offered a loan restructuring program in which a bor-
rower's current loan balance can be recomputed with a reduced annual interest rate of 9.0%, with
payment terms of up to 5 years. Juan decides to avail of this program. If he will pay off the remainder
of his loan within 30 months, what will be his monthly installment under this restructured loan?
5
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