Maria saved money for her dream house but she needed Php700,000 more to complete the deal. The banks offers the mortgage at an annual interest rate of 7.5%. If Maria will pay the her debt quarterly for 15 years, construct an amortization schedule to liquidate Maria’s loan.

Maria saved money for her dream house but she needed Php700,000 more to complete the deal. The banks offers the mortgage at an annual interest rate of 7.5%. If Maria will pay the her debt quarterly for 15 years, construct an amortization schedule to liquidate Maria’s loan.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 5E

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Maria saved money for her dream house but she needed Php700,000 more to complete the
deal. The banks offers the mortgage at an annual interest rate of 7.5%. If Maria will pay the
her debt quarterly for 15 years, construct an amortization schedule to liquidate Maria’s loan.

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