How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth 5 1/8% compounded quarterly for 20 years? -tm 1-(1+) 1-(1+ 0.042)-2-4 - P = R- 3000- P22 904.57 0.042 m cash price = down payment + Present value cash price = 2500 + 22904.57 P25 404.57 tm = 2 * 4 = 8 Period (n-tm) Regular Payment (R) Interest (i=j/m) Repayment of the Loan Outstanding Balance 22904.57 1 3000 240.50 2759.50 20145.07 2. 3000 211.52 2788.48 17356.59 3 3000 182.24 2817.76 14538.84 4 3000 152.66 2847.34 11691.49 3000 122.76 2877.24 8814.25 3000 92.55 2907.45 5906.80 3000 62.02 2937.98 2968.82 3000 31.17 2968.83 0.00
How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth 5 1/8% compounded quarterly for 20 years? -tm 1-(1+) 1-(1+ 0.042)-2-4 - P = R- 3000- P22 904.57 0.042 m cash price = down payment + Present value cash price = 2500 + 22904.57 P25 404.57 tm = 2 * 4 = 8 Period (n-tm) Regular Payment (R) Interest (i=j/m) Repayment of the Loan Outstanding Balance 22904.57 1 3000 240.50 2759.50 20145.07 2. 3000 211.52 2788.48 17356.59 3 3000 182.24 2817.76 14538.84 4 3000 152.66 2847.34 11691.49 3000 122.76 2877.24 8814.25 3000 92.55 2907.45 5906.80 3000 62.02 2937.98 2968.82 3000 31.17 2968.83 0.00
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth 5
1/8% compounded quarterly for 20 years?
Transcribed Image Text:-tm
1-(1+)
1-(1+
0.042)-2-4
- P = R-
3000-
P22 904.57
0.042
m
cash price = down payment + Present value
cash price = 2500 + 22904.57 P25 404.57
tm = 2 * 4 = 8
Period (n-tm) Regular Payment (R) Interest (i=j/m) Repayment of the Loan Outstanding Balance
22904.57
1
3000
240.50
2759.50
20145.07
2.
3000
211.52
2788.48
17356.59
3
3000
182.24
2817.76
14538.84
4
3000
152.66
2847.34
11691.49
3000
122.76
2877.24
8814.25
3000
92.55
2907.45
5906.80
3000
62.02
2937.98
2968.82
3000
31.17
2968.83
0.00
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