Sigma Bank granted a loan to a borrower in the amount of P 5,000,000 on January 1, 2021. The interest rate on the loan is 10% payable annually starting December 31, 2021. The loan matures in five years on December 31, 2025. Sigma Bank incurs P 39,400 of direct loan origination cost and P 10,000 of indirect loan origination cost. In addition, Sigma Bank charges the borrower an 8-point nonrefundable loan origination fee. PV of principal .5674; PV of interest 3.6048 Prepare an amortization table. 1. The carrying amount of the loan as of January 1, 2021 is A. P 4,639,400 B. P 5,000,000 C. P 4,649,400 D. P 5,039,400 2. The effective interest of the loan is A. 9.80 % B. 10% C. 12% D. 11.94% 3. What is the carrying amount of the loan as at December 31, 2021? A. P 5,000,000 B. P 4,696,128 C. P 4,759,663 D. P 4,639,400
Sigma Bank granted a loan to a borrower in the amount of P 5,000,000 on January 1, 2021. The interest rate on the loan is 10% payable annually starting December 31, 2021. The loan matures in five years on December 31, 2025. Sigma Bank incurs P 39,400 of direct loan origination cost and P 10,000 of indirect loan origination cost. In addition, Sigma Bank charges the borrower an 8-point nonrefundable loan origination fee. PV of principal .5674; PV of interest 3.6048
Prepare an amortization table.
1. The carrying amount of the loan as of January 1, 2021 is
A. P 4,639,400
B. P 5,000,000
C. P 4,649,400
D. P 5,039,400
2. The effective interest of the loan is
A. 9.80 %
B. 10%
C. 12%
D. 11.94%
3. What is the carrying amount of the loan as at December 31, 2021?
A. P 5,000,000
B. P 4,696,128
C. P 4,759,663
D. P 4,639,400
3.The interest income to be recognized in 2021
A. P 493,861
B. P 500,000
C. P 555,138
D. P 556,728
4. What is the amount of discount amortization as at December 31, 2021?
A. P 56,728
B. P 63,535
C. P 71160
D. P 56,627
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