Your parents obtain a car for P1,500,000.00. The agreed payment is 5 years at monthly amortization charging them 8% interest rate. The company required a down payment of 30%. Find the monthly amortization using an excel format. After paying for 3 years, your parents decided to pay the remaining principal balance, how much is the remaining principal balance at the beginning of 4th year? How much interest did your parent save by paying at the start of 4th year the remaining principal amount? If they decided not to pay the principal starting on the 4th year and continue paying the monthly amortization until the end of term, how much is the total interest to paid?
Your parents obtain a car for P1,500,000.00. The agreed payment is 5 years at monthly amortization charging them 8% interest rate. The company required a down payment of 30%. Find the monthly amortization using an excel format. After paying for 3 years, your parents decided to pay the remaining principal balance, how much is the remaining principal balance at the beginning of 4th year? How much interest did your parent save by paying at the start of 4th year the remaining principal amount? If they decided not to pay the principal starting on the 4th year and continue paying the monthly amortization until the end of term, how much is the total interest to paid?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
Related questions
Question
Your parents obtain a car for P1,500,000.00.
The agreed payment is 5 years at monthly amortization charging them 8% interest rate. The company required a down payment of 30%. Find the monthly amortization using an excel format. After paying for 3 years, your parents decided to pay the remaining principal balance, how much is the remaining principal balance at the beginning of 4th year? How much interest did your parent save by paying at the start of 4th year the remaining principal amount? If they decided not to pay the principal starting on the 4th year and continue paying the monthly amortization until the end of term, how much is the total interest to paid?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 3 images
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,