2. Monthly payments of P800 each are used to settle a loan for 8 months at 8%compounded monthly. Find the present value of the loan and construct an amortizationtable.3. A sala set costs P6,800 cash. A buyer pays P2,500 down-payment and the balance willbe paid by equal monthly installment payments for 8 months with interest rate of 6%compounded monthly. Find:a. the monthly payments:b. construct an amortization schedule.

Present value of annuity is the present value of all the stream of cash flow that occur in future.

Answered: 2. Monthly payments of P800 each are…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 41P

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Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
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2. Monthly payments of P800 each are used to settle a loan for 8 months at 8% compounded monthly. Find the present value of the loan and construct an amortization table.