4. A loan of P8,000 has an interest of 10% compounded annually is to be paid by equal annual payments over the next 3 years. Find the annual payment and construct an amortization schedule.
4. A loan of P8,000 has an interest of 10% compounded annually is to be paid by equal annual payments over the next 3 years. Find the annual payment and construct an amortization schedule.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
SUBJECT:
TOPIC: AMORTIZATION
PLEASE ANSWER THE QUESTION ON THE FIRST PICTURE AND MAKE IT A BASIS ON THE SECOND EQUATION. THANK YOU
Transcribed Image Text:4. A loan of P8,000 has an interest of 10%
compounded annually is to be paid by
equal annual payments over the next 3
years. Find the annual payment and
construct an amortization schedule.
![m=4
A debt of P10000 with interest at the rate of 15% compounded quarterly is to be amortized by 7
equal quarterly payments at the end of each months, the first payment is to be made after I
year. Find the quarterly payment and construct an amortization schedule. i=0-15
4
PERIOD
Po=P+Iv
10 000
1254
P-(A-1)
1
2
V
3
4
5
6
7
8
9
10
TOTAL
OUTSTANDING
PRINCIPAL AT
BEGINNING OF
PERIOD
A=?
A= P
= 10764.0625
to 764.06 +4
10000
375
10 000 +3750 375 x 0:15
=10375
389.0625
10 375 +389. 0625 10 764-06 x 0-15
+-403.65
11167.71484
167-71-1424-7
9743.00815
9743.008-1478.13
8264.874956
+= 10 000
6731.311767
5140.239958
3489.502957
PX
1776.863317
H
[
INTEREST
TO OBOX
0-15
403.6523438
Pxi
418.7893066
Pxi
365.3628056
Pxi
252.4241913
192.7589984
309.93281091843.496
130.8563609
66.6323744
1-(1)-"
0-15/4
A
PAYMENT
1843.496
1- (1+0)-7
1843.496
PERIOD=10
1843.496
✓1843.496
✓1843.496
1843.496
30 000
2904.471692 12904.472
•] (151) m
4045)-7] (14 015) ³3
A-I
PRINCIPAL REPAID AT END
OF PERIOD
1843.496-418.789
1424.706693
1843-496 365-30
1478.133194
A-I
1533.563189
1591.071809
1650.737002
1712.639639
1776.863626
11167.71515
= $1843.496](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F302839aa-135a-40c2-ab42-9dff07050dc2%2F276f86d3-0f27-40bf-a342-7119eee32da5%2Fcq1zdc5_processed.png&w=3840&q=75)
Transcribed Image Text:m=4
A debt of P10000 with interest at the rate of 15% compounded quarterly is to be amortized by 7
equal quarterly payments at the end of each months, the first payment is to be made after I
year. Find the quarterly payment and construct an amortization schedule. i=0-15
4
PERIOD
Po=P+Iv
10 000
1254
P-(A-1)
1
2
V
3
4
5
6
7
8
9
10
TOTAL
OUTSTANDING
PRINCIPAL AT
BEGINNING OF
PERIOD
A=?
A= P
= 10764.0625
to 764.06 +4
10000
375
10 000 +3750 375 x 0:15
=10375
389.0625
10 375 +389. 0625 10 764-06 x 0-15
+-403.65
11167.71484
167-71-1424-7
9743.00815
9743.008-1478.13
8264.874956
+= 10 000
6731.311767
5140.239958
3489.502957
PX
1776.863317
H
[
INTEREST
TO OBOX
0-15
403.6523438
Pxi
418.7893066
Pxi
365.3628056
Pxi
252.4241913
192.7589984
309.93281091843.496
130.8563609
66.6323744
1-(1)-"
0-15/4
A
PAYMENT
1843.496
1- (1+0)-7
1843.496
PERIOD=10
1843.496
✓1843.496
✓1843.496
1843.496
30 000
2904.471692 12904.472
•] (151) m
4045)-7] (14 015) ³3
A-I
PRINCIPAL REPAID AT END
OF PERIOD
1843.496-418.789
1424.706693
1843-496 365-30
1478.133194
A-I
1533.563189
1591.071809
1650.737002
1712.639639
1776.863626
11167.71515
= $1843.496
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