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.PRINCIPALOutstandingBalanceInterestRegularPayment (R)PeriodComponent of Component ofРауmentРаymentP11,571.137,936.53E1.2.3.P4,328.87P4,328.87P4,328.87P900P694.27P3,428.873,852.684,083.844245.031FTotalG.H.Guide Questions:A. How much is the amount of the loan? (Outstanding balance at time 0)B. How much is the first regular annual payment?C. For the second payment, how much goes to pay the principal?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?

As per rule, allowed to answer first three questions and post the remaining in the next submission.

Answered: to P15,000 is to be paid annually for…

to P15,000 is to be paid annually for mually. The annual amortization is PE Interest PRINCIPAL Component of Component of Раyment Раyment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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