Pedro bought a new car today from Barboncito Motors. The former proposed to pay the latter the remaining balance of P800,000.00 in 35 equal monthly payments, with the first installment to be made one month from today, plus one final payment of P50,000.00 at the end of 36 months from date of agreement. If the interest rate applicable to the transaction is 12% compounded monthly, and assuming that there will be timely payments, how much is the amount of Pedro's Monthly Payment ?

Pedro bought a new car today from Barboncito Motors. The former proposed to pay the latter the remaining balance of P800,000.00 in 35 equal monthly payments, with the first installment to be made one month from today, plus one final payment of P50,000.00 at the end of 36 months from date of agreement. If the interest rate applicable to the transaction is 12% compounded monthly, and assuming that there will be timely payments, how much is the amount of Pedro's Monthly Payment ?

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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Ian wishes to discharge a loan of ₱ 50,000 borrowed from JB by means of periodic payments of ₱5,000. JB charges 4% interest effective per period. (payments are made at the end of each period)1. How many regular payments of ₱5,000 should Ian make?2. How much extra payment X should he make along with the last regular payment to completely discharge this loan?3. How much payment Y should he make one period after the last regular payment to completely discharge this loan?4. How much payment Z should he make on the exact time after the last regular payment has been made to completely discharge this loan?
To travel to America via the ship Titanic, Juana made a P100,000 loan which is to be paid over a term of 2 years at 7.2% interest convertible quarterly. The lender wants only payments of interest until the end of the term when the loan balance P100,000 must be repaid in full. The borrower will make level quarter-end payments to a sinking fund earning 6% payable quarterly. 1.) Calculate the sinking fund Balance immediately after the 6th payment is made.
Franklin owes the following amounts to the same person: $16,000 due today, $11,500 due in 1¼ years, $17,000 due in 2¾ years, and $15,000 due in 4¼ years. He wants to make a single payment of $56,500 instead. Using an interest rate of 8% compounded quarterly, when should this payment be made?
Mr. Reyes borrows P600,000 at 12% compounded annually, agreeing to repay the loan in 15 equal payments. What is the value of equal payment and the accumulated amount?
Mark has an amortization and he is required to do semi-annual payments for 15 years. If the present value is 10,000,000 pesos and the interest rate is 17% interest rate compounded semi-annually, how much is the outstanding balance after the 8th payment? 9,128,071.23 pesos remaining 7,878,981.87 pesos remaining 9,234,561.98 pesos remaining 7,453,441.05 pesos remaining
For my newly purchased car, I have to pay five year-end installments of P250,000 each year for the next 5 years. For the first year, the maintenance will be covered by the dealer. For the second year the maintenance will cost me P10,000. For the remaining years, the maintenance will increase by P10,000 each year. How much should I set aside in a bank to meet the installments and maintenance expenses for the next 5 years if the interest rate is 8%? P 1,176,056 P 1,472,995 P1,071,902 P 1,090,450
Kate owes P120 000 due in 4 years plus the accumulated interest from today at 13% compounded quarterly. She agrees to pay it in installment: P30,000 after 2 years; P40,000 after 3 years the remaining balance at the end of 4 years If the obligation was to be settled by equal periodic payments with first payment due at the beginning of the 3rd quarter of the 2nd year. Find the amount of the equal payments.
samson entered into an agreement with delilah bank whereby the latter shall pay the former double the amount after a period of n years. a.) if the agreed interest rate is 14% compounded yearly, how much is the accurate value of n1? b.) if the parties agreed to use of an approximate rule, how much is the value of n2?
Lea borrows PhP 100,000 at an annual effective interest rate of 4% and agrees to repay it with 30 level annual instalments paid at the end of each year. At the end of 10 years, Lea has the option to repay the entire loan with a final payment X, in addition to the regular payment. This will yield the lender an annual effective interest rate of 4.5% over the 10 year period. Calculate X.

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