Rate and factor rates should be rounded off to 6 decimal places for the computation of monthly amortization. The monthly amortization should be rounded off to 2 decimal places (centavos). For the add-on interest computation, interest and monthly interest should be rounded off to nearest 2 decimal places (centavos). Mr. Aldrin and Mrs. Aileen Pereda are engaged in several businesses. Mr. Aldrin Pereda is a freelance property consultants for various real estate developer. He also co own and manage with his only son, Aldrin Patrick, a business firm engage in providing services for air-conditioning installation, repair and maintenance. Father and son is thinking of buying a brand-new Mitsubishi L300 FB utility vehicle to replace their old one. The list price of a brand-new Mitsubishi L300 FB van is P813,000.00. The product specialist from Mitsubishi outlet they talked to suggested 2 financing schemes from their financial institution partners. The 2 schemes are as follows: Bank of Philippine Islands Orix Metro Leasing Regular Utility Vehicle Loan Regular Auto Loan Down payment of 15% on the amount of the Down payment of 30% on the amount of the vehicle vehicle Loan Term is 5 years Payable in equal monthly amortization Loan Rate is 10.93% per annum Simple interest Loan Term is 5 years Payable in monthly installments Loan Rate is 10.93% per annum. Add-on interest Mr. Aldrin Pereda and family however, only has a total of P130,000.00 in the bank. If you are the financial consultant of the Pereda family, which financing option will you suggest that Mr. Pereda choose and why? Compute for the following: Bank of Philippine Islands compute for down payment compute for loan amount compute for rate compute for number of amortization final answer/amortization ORIX METRO LEASING compute for down payment compute for loan amount compute for number of installment compute for interest compute for monthly interest compute for monthly principal compute for monthly installment

Rate and factor rates should be rounded off to 6 decimal places for the computation of monthly amortization. The monthly amortization should be rounded off to 2 decimal places (centavos). For the add-on interest computation, interest and monthly interest should be rounded off to nearest 2 decimal places (centavos). Mr. Aldrin and Mrs. Aileen Pereda are engaged in several businesses. Mr. Aldrin Pereda is a freelance property consultants for various real estate developer. He also co own and manage with his only son, Aldrin Patrick, a business firm engage in providing services for air-conditioning installation, repair and maintenance. Father and son is thinking of buying a brand-new Mitsubishi L300 FB utility vehicle to replace their old one. The list price of a brand-new Mitsubishi L300 FB van is P813,000.00. The product specialist from Mitsubishi outlet they talked to suggested 2 financing schemes from their financial institution partners. The 2 schemes are as follows: Bank of Philippine Islands Orix Metro Leasing Regular Utility Vehicle Loan Regular Auto Loan Down payment of 15% on the amount of the Down payment of 30% on the amount of the vehicle vehicle Loan Term is 5 years Payable in equal monthly amortization Loan Rate is 10.93% per annum Simple interest Loan Term is 5 years Payable in monthly installments Loan Rate is 10.93% per annum. Add-on interest Mr. Aldrin Pereda and family however, only has a total of P130,000.00 in the bank. If you are the financial consultant of the Pereda family, which financing option will you suggest that Mr. Pereda choose and why? Compute for the following: Bank of Philippine Islands compute for down payment compute for loan amount compute for rate compute for number of amortization final answer/amortization ORIX METRO LEASING compute for down payment compute for loan amount compute for number of installment compute for interest compute for monthly interest compute for monthly principal compute for monthly installment

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:Rate and factor rates should be rounded off to 6 decimal places for the computation of monthly amortization. The monthly amortization should be rounded off to 2 decimal places (centavos). For the add-on interest computation, interest and monthly interest should be rounded off to nearest 2 decimal places (centavos). Mr. Aldrin and Mrs. Aileen Pereda are engaged in several businesses. Mr. Aldrin Pereda is a freelance property consultants for various real estate developer. He also co own and manage with his only son, Aldrin Patrick, a business firm engage in providing services for air-conditioning installation, repair and maintenance. Father and son is thinking of buying a brand-new Mitsubishi L300 FB utility vehicle to replace their old one. The list price of a brand-new Mitsubishi L300 FB van is P813,000.00. The product specialist from Mitsubishi outlet they talked to suggested 2 financing schemes from their financial institution partners. The 2 schemes are as follows: Bank of Philippine Islands Orix Metro Leasing Regular Utility Vehicle Loan Regular Auto Loan Down payment of 15% on the amount of the Down payment of 30% on the amount of the vehicle vehicle Loan Term is 5 years Payable in equal monthly amortization Loan Rate is 10.93% per annum Simple interest Loan Term is 5 years Payable in monthly installments Loan Rate is 10.93% per annum. Add-on interest Mr. Aldrin Pereda and family however, only has a total of P130,000.00 in the bank. If you are the financial consultant of the Pereda family, which financing option will you suggest that Mr. Pereda choose and why? Compute for the following: Bank of Philippine Islands compute for down payment compute for loan amount compute for rate compute for number of amortization final answer/amortization ORIX METRO LEASING compute for down payment compute for loan amount compute for number of installment compute for interest compute for monthly interest compute for monthly principal compute for monthly installment

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