Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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1. Amortization Payment
(a)Cedric purchased a new fishing boat for P130,000. He made a P20,000 down payment, and financed the balance at his bank for 7 years. What amortization payments are required every 3 months, at 16% interest, to pay off the boat loan?
b.Cameron Manufacturing recently purchased a new computer system for P150,000. What amortization payment is required each month, at 12% interest, to pay off this obligation in 8 years?
c. The Clintons bought a home for P12,050,000. After a 15% down payment, the balance is financed at 8% interest for 9 years.
(i) What equal quarterly payments will be required to amortize this mortgage loan? (ii) What is the total amount of interest the Clintons will pay on the loan?
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