Exercise 2:Directions: Analyze the given amortization procedures in the table below then fill in cachblank using the guide questions below the table.Problem: A salary loan amounting to P15,000 is to be paid annually for 4 years with aninterest rate of 6% compounded annually. The annual amortization is P P4,328.87.PRINCIPALOutstandingBalancePeriodRegularInterestPayment (R) Component of Component ofРаymentA.РаymentPI1,571.137,936.53P3,428.87C3,852.684,083.84P900P694.27P4,328.87P4,328.87P4,328.87E4.245.031TotalGH.Guide Questions:D. For the third payment, how much goes to pay the interest?E. How much is the outstanding balance after the 3rd payment?F. How much should be the outstanding balance after the 4th or last payment?G. How much is the total amount of regular payment for 4 years?H. How much is the total interest paid for 4 years?I. How much is the total payment for the principal for 4 years?1123-

D. Calculate the interest amount for the third payment by multiplying the outstanding balance of…

Problem: A salary loan amounting to P15,000 is to be paid annually for 4 years with an interest rate of 6% compounded annually. The annual amortization is P P4,328.87. Interest Payment (R) Component of Component of Payment Outstanding Balance Period Regular PRINCIPAL Payment PI1,571.13 7,936.53 E P900 P3,428.87 P4,328.87 P4,328.87 P4,328.87 P694.27 D. 3,852.68 245.031 4,083.84 1. Total G H. Guide Questions: D. For the third payment, how much goes to pay the interest? E. How much is the outstanding balance after the 3rd payment? F. How much should be the outstanding balance after the 4th or last payment? G. How much is the total amount of regular payment for 4 years? H. How much is the total interest paid for 4 years? L How much is the total payment for the principal for 4 years? 01234

Problem: A salary loan amounting to P15,000 is to be paid annually for 4 years with an interest rate of 6% compounded annually. The annual amortization is P P4,328.87. Interest Payment (R) Component of Component of Payment Outstanding Balance Period Regular PRINCIPAL Payment PI1,571.13 7,936.53 E P900 P3,428.87 P4,328.87 P4,328.87 P4,328.87 P694.27 D. 3,852.68 245.031 4,083.84 1. Total G H. Guide Questions: D. For the third payment, how much goes to pay the interest? E. How much is the outstanding balance after the 3rd payment? F. How much should be the outstanding balance after the 4th or last payment? G. How much is the total amount of regular payment for 4 years? H. How much is the total interest paid for 4 years? L How much is the total payment for the principal for 4 years? 01234

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 11P

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