FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
6th Edition
ISBN: 9781260529326
Author: Kapoor
Publisher: McGraw-Hill Publishing Co.
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Chapter 1, Problem 11P
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To discuss: Whether this offer is accepted or not.
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Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and financing the rest at 7% interest for 30 years.
How much money have you paid to the loan company so far (over the last 10 years)?
You are interested in buying a house worth P1,200,000. You paid P250,000 as down payment. In order to pay for the remaining amount, you take out a loan from the bank at a 9% interest rate to be paid for 25 years.
a.) How much of the principal has been paid after 10 years?
b.) After 15 years, you decide to sell the house. How much should. The selling price be to cover the remaining balance of payments?
c.) What is the total interest paid for the loaned amount?
If a company will pay $75,000 for a truck that will increase deliveries to be made which will give an additional $10,000 in revenue each year for 10 years, should the company buy it? Interest rates are 4%. Show your math
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