Ruby Bakeshop obtains a loan of P500,000, with interest at 8% compounded quarterly, for the construction of a new branch in Angeles City. The owner will repay the loan by payments made quarterly for 2 1/2 years. Create an amortization schedule to answer the following questions: 1. How much principal repayment paid in the 9th payment period? 2. How much is the present outstanding balance on the 7th payment period? 3. How much is the total interest? 4. How much is the interest paid in the 5th payment? 5. Find the quarterly payment.
Ruby Bakeshop obtains a loan of P500,000, with interest at 8% compounded quarterly, for the construction of a new branch in Angeles City. The owner will repay the loan by payments made quarterly for 2 1/2 years. Create an amortization schedule to answer the following questions: 1. How much principal repayment paid in the 9th payment period? 2. How much is the present outstanding balance on the 7th payment period? 3. How much is the total interest? 4. How much is the interest paid in the 5th payment? 5. Find the quarterly payment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Ruby Bakeshop obtains a loan of P500,000, with interest at 8% compounded quarterly, for the construction of a new branch in Angeles City. The owner will repay the loan by payments made quarterly for 2 1/2 years. Create an amortization schedule to answer the following questions:
1. How much principal repayment paid in the 9th payment period?
2. How much is the present outstanding balance on the 7th payment period?
3. How much is the total interest?
4. How much is the interest paid in the 5th payment?
5. Find the quarterly payment.
Transcribed Image Text:Ruby Bakeshop obtains a loan of P500,000, with interest at 8% compounded
quarterly, for the construction of a new branch in Angeles City. The owner will repay
the loan by payments made quarterly for 2 12 years. Create an amortization
schedule to answer the following questions:
1.
P55,663.26
2.
P56,632.64
How much principal
repayment paid in the
9th payment period?
3.
P6,235.88
4.
P160,526.39
How much is the present
outstanding balance on
the 7th payment period?
5.
P53,501.79
6.
P52,452.73
How much is the total
interest?
7.
P108,073.65
How much is the interest
8.
P7,205.04
paid in the 5th payment?
9.
P96,306.90
Find the quarterly
payment.
10. P51,851.60
11. P122,219.20
12. P211,950.63
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