CASE: A man is currently paying on a monthly basis his 300,000-peso salary loan made a year ago. He has two more years left to extinguish the loan but unfortunately, he lost his job and thought he cannot anymore afford to pay the monthly amortization payments. He has plans to get back on his feet and to he requested the bank to have his loan re-structured so that he will be paying the balance with the SAME amortization amount but on a quarterly basis. The financing institution granted his request. Assume a constant interest rate of 15% per compounded annually, answer the following questions. Questions: 1. How much is the amortization payments? 2. For how long will the man be paying the remaining balance? 3. CONSTRUCT THE CASH FLOW DIAGRAM 4. Construct the amortization table.
CASE: A man is currently paying on a monthly basis his 300,000-peso salary loan made a year ago. He has two more years left to extinguish the loan but unfortunately, he lost his job and thought he cannot anymore afford to pay the monthly amortization payments. He has plans to get back on his feet and to he requested the bank to have his loan re-structured so that he will be paying the balance with the SAME amortization amount but on a quarterly basis. The financing institution granted his request. Assume a constant interest rate of 15% per compounded annually, answer the following questions. Questions: 1. How much is the amortization payments? 2. For how long will the man be paying the remaining balance? 3. CONSTRUCT THE CASH FLOW DIAGRAM 4. Construct the amortization table.
Chapter6: Business Expenses
Section: Chapter Questions
Problem 89TPC
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Question
Transcribed Image Text:CASE: A man is currently paying on a monthly basis his 300,000-peso salary loan made a
year ago. He has two more years left to extinguish the loan but unfortunately, he lost his job
and thought he cannot anymore afford to pay the monthly amortization payments. He has
plans to get back on his feet and to he requested the bank to have his loan re-structured so
that he will be paying the balance with the SAME amortization amount but on a quarterly
basis. The financing institution granted his request. Assume a constant interest rate of 15%
per compounded annually, answer the following questions.
Questions:
1. How much is the amortization payments?
2. For how long will the man be paying the remaining balance?
3. CONSTRUCT THE CASH FLOW DIAGRAM
4. Construct the amortization table.
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