A loan of PhP 75,000 with level payments to be made at the end of every month for 24 months with monthly rate of 6% along with deposits to a sinking fund that earns a monthly rate of 3%. How much is the amount in the sinking fund after 3rd payment? (a) PhP 132.67 (b) PhP 6,733.71 (c) PhP 6,535.68 (d) PhP 68,266.29
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
A loan of PhP 75,000 with level payments to be made at the end of every month for 24 months with monthly rate of 6% along with deposits to a sinking fund that earns a monthly rate of 3%. How much is the amount in the sinking fund after 3rd payment?
(a) PhP 132.67
(b) PhP 6,733.71
(c) PhP 6,535.68
(d) PhP 68,266.29
Step by step
Solved in 3 steps
