Which of the following statement is correct?
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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- Luis was granted a loan of P 20,000 by his employer CPM Industrial Fabricator and ConstructionCorporation with an interest of 6% for 180 days on the principal collected in advance. Thecorporation would accept a promissory note for P 20,000 non-interest for 180 days. If discountedat once, find the proceeds of the note.Jerome obtains Php 15,000 as the proceeds of a 300-day loan from a bank charging 5% Discount. What will Jerome pay at the maturity date?Bry borrowed a certain amount from ABC lending corp. In their contract, Kem must pay PHP 150,000 in three years. If the simple interest rate is 7.5%, what is the effective interest rate per year?
- Rosel applied for a cash loan with an amount of P100,000.00 to be paid using ordinary simple interest within 2 year/s and 5 months with an agreed interest rate of 6.5%. How much will she pay all in all at the end of the loaned period in pesos?Cesar Moreno is considering entering into an agreement with BDO bank to deposit P1,000 into a special account at the end of the first year. P1,100 at the end of the second year, etc. increasing by P100 each year. At the end of 15 years, he would be able to withdraw a lump sum of P36,000 at what rate would he earn interest, if the interest was compouded anually?A woman arranges to repay a P10,000 bank loan in 10 equal payments at a 10% effective annual interest rate. Immediately after her third payment she borrows another P5000, also at 10%. When she borrows the P5,000, she talks the banker into letting her repay the remaining debt of the first loan and the entire amount of the second loan in 12 equal annual payments. The first of these 12 payments would be made 1 year after she receives the P5,000. Compute the amount of each of the 12 payments.
- AtoHayle borrowed birr 200,000 at 6% compounded monthly for 30 years, and agree to repay the loan in 360 equal monthly installments including all interests due. Suppose that immediately after the 24th payment AtoHayle decides to increase the monthly payment by birr 600 per month. How many more payments must be made?How much would this save over the life of the loan?How much is the total payment made over the entire period?How much interest is paid over the entire period?AtoHayle borrowed birr 200,000 at 6% compounded monthly for 30 years, and agree to repay the loan in 360 equal monthly installments including all interests due. Suppose that immediately after the 24th payment AtoHayle decides to increase the monthly payment by birr 600 per month.How much is the total payment for the first 24th periodic payments?Formulate loan amortization schedule for the first year.Find the unpaid balance immediately after the 24th payment.How many more payments must be made?How much would this save over the life of the loan?How much is the total payment made over the entire period?How much interest is paid over the entire period?Kim owes Php40,000, due with accumulated interest at the rate (06, m = 4) at the end of 5 years and 3 months. What is the value of this obligation two years before it is due to a man to whom money is worth (.06, m= 1) Miles owes the following obligations: (a) Php50,000 due after 3 years, and (b) Php 75,000 due after 4 years with accumulated interest at (0.06, m = 2) He paid Php90,000 at the end of 2 years. What single additional payment should he make at the end of 4 years to cancel his obligations if money is worth (06, m = 4) to his creditor? Julia owes Luis Php20,000 due after 3 years and Php 30,000 due after 3 years and 6 months. She intends to pay with equal amounts at the end of 2 years and 4 years. What equal payment will discharge these debts if money is worth (0.06, m = 2)?
- Chuck Ponzi has talked an elderly woman into loaning him $35000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $35000 with an annual interest rate of 11% over the next 15 years. Determine the cash flow to the woman under an interest-only loan, in which Ponzi will pay the annual interest expense each year and pay the principal back at the end of the contract. What is the amount of payment that the woman will receive at the end of the loan in year 15?Lea borrows PhP 100,000 at an annual effective interest rate of 4% and agrees to repay it with 30 level annual instalments paid at the end of each year. At the end of 10 years, Lea has the option to repay the entire loan with a final payment X, in addition to the regular payment. This will yield the lender an annual effective interest rate of 4.5% over the 10 year period. Calculate X.Emilio desires $9,000 as the proceeds of a 90-day loan from Winston who charges 5% interest in advance.What sum will Emilio pay at the end of 90 days?