Mr smith wants to borrow P100,000 from a bank to rebuild his shop from damages caused by an earthquake. The interest rate is 14% compounded quarterly, and he plans to pay off the debt in three years by making equal quarterly payments. Create an amortization schedule (table) to help him keep track of the payments he have made, the interest he paid, the principal he repaid, and the principal he still owe for each month. Below is an example of a amortization table, make the same table based on the given problem
Mr smith wants to borrow P100,000 from a bank to rebuild his shop from damages caused by an earthquake. The interest rate is 14% compounded quarterly, and he plans to pay off the debt in three years by making equal quarterly payments. Create an amortization schedule (table) to help him keep track of the payments he have made, the interest he paid, the principal he repaid, and the principal he still owe for each month. Below is an example of a amortization table, make the same table based on the given problem
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
Mr smith wants to borrow P100,000 from a bank to rebuild his shop from damages caused by an earthquake. The interest rate is 14% compounded quarterly, and he plans to pay off the debt in three years by making equal quarterly payments. Create an amortization schedule (table) to help him keep track of the payments he have made, the interest he paid, the principal he repaid, and the principal he still owe for each month. Below is an example of a amortization table, make the same table based on the given problem
Transcribed Image Text:Amortization table
Ci
C2
C3
C4
Outstanding
principal at
beginning of
period
P5,000
4,283.18
Payment
Principal repaid
at end of
period
Period (n)
Interest due at
end of period
1
P300.00
P716.82
P1,016.82
P1,016.82
256.99
759.83
3
3,523.35
2,717.93
211.40
P1,016.82
P1,016.82
805.42
4
163.08
853.74
P1,016.82
P1,016.82
P6,100.92
5
1,864.19
111.85
904.97
959.22
57.55
959.27
TOTALS
P1,100.87
P5,000.05
C1= Clri- C4n-1
C2= C1*.06
C3= A
C4 = C3-C2
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