Question: Pedro borrows P300,000.00 from lenderABC today at 12% compounded monthly. To fulfill his obligation to repay the loan, Pedro agreedtostart paying the six (6) equal

Pedro borrows P300,000.00 from lenderABC today at 12% compounded monthly.

To fulfill his obligation to repay the loan, Pedro agreedtostart paying the six (6) equal monthlypayments starting next month.

a. What will be theamount of his monthly amortization?

b. Construct an amortization schedule. Use a table similar to that found in our textbook.

c. What will be the outstanding balance of his loan at the end of4 months from today?

d. IfPedro failed to pay the 2^ndand 3^rdmonthly amortization, how much shallhe the required single payment on the fifth month in order to fully pay his outstanding obligation?

e. Supposed thathe will still not be ablepay the single totalpayment on the Fifth month as stated in question d. above, and assuming further that both parties agree that theoutstanding obligations shall instead bepaid in7 equal monthly installments, at 15% compounded monthly, starting on the9^thmonth,what will the value of such monthly installment be?

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