Solve the following problems involving interest. Show your solution. 1. To expand his business in selling...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Solve the following problems involving interest. Show your solution. 1. To expand his business in selling accessories, Carl needs a loan of PHP50,000. A bank approved his loan at 10% annual interest rate which he agreed to pay back in 6 equal monthly installments. Complete the values of his amortization schedule below. Show your solutions on another sheet of paper. Payment No. Payment Interest 1 2 1 3 4 5 123 2 3 4 5 6 8,578.07 Principal PhP 1000 20000 Principal PhP8161.40 8,367.14 8,507.18 200000 II. Compute for I and F using the following information. Show your solution on a separate sheet of paper. Rate 5% 2%/month 7200 8% 60000 6% 348.65 3.3% 141.20 Time 1 year 2 years 1 1/2 years 3 years 5 years Balance I 25,311.19 0.00 F III. Solve the following problems. 1. Karina borrowed PhP5,000 for a year 15% . How much will she need to pay for the loan when it matures? How much interest will she have to pay? 2. Manny lent Robby PhP10,000 at 12%. Robby promised to pay Manny in 1 year. Compute and compare the ordinary and exact interest for the said loan. Which interest will Robby choose to pay if given the choice? IV. Prepare an amortization schedule for the 12 monthly payments of a loan worth PhP200000 being charged with 7.5% per annum. Compare your answer with an online calculator or Microsoft Excel. Solve the following problems involving interest. Show your solution. 1. To expand his business in selling accessories, Carl needs a loan of PHP50,000. A bank approved his loan at 10% annual interest rate which he agreed to pay back in 6 equal monthly installments. Complete the values of his amortization schedule below. Show your solutions on another sheet of paper. Payment No. Payment Interest 1 2 1 3 4 5 123 2 3 4 5 6 8,578.07 Principal PhP 1000 20000 Principal PhP8161.40 8,367.14 8,507.18 200000 II. Compute for I and F using the following information. Show your solution on a separate sheet of paper. Rate 5% 2%/month 7200 8% 60000 6% 348.65 3.3% 141.20 Time 1 year 2 years 1 1/2 years 3 years 5 years Balance I 25,311.19 0.00 F III. Solve the following problems. 1. Karina borrowed PhP5,000 for a year 15% . How much will she need to pay for the loan when it matures? How much interest will she have to pay? 2. Manny lent Robby PhP10,000 at 12%. Robby promised to pay Manny in 1 year. Compute and compare the ordinary and exact interest for the said loan. Which interest will Robby choose to pay if given the choice? IV. Prepare an amortization schedule for the 12 monthly payments of a loan worth PhP200000 being charged with 7.5% per annum. Compare your answer with an online calculator or Microsoft Excel.
Expert Answer:
Answer rating: 100% (QA)
The image contains several questions related to solving problems involving simple interest Lets tackle them one by one I To expand his business in sel... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Solve the following crossword. (Round your final answers to the nearest dollar, but do not round intermediate calculations.) ACROSS 1. A rich uncle has promised to pay you $3,160 a year for the next...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
State with reasons, whether the following statements are true or false : (i) Overhauling expenses for the engine of motor car to get better fuel efficiency is revenue expenditure. (ii) Depreciation...
-
Discuss why organizational design and communication flow are so closely related.
-
A flow process that operates with steam has one inlet stream (A) and two outlet streams (B and C). Stream A is at 20 bar, 25 C, and has a mass flow rate of 10 kg/s; stream B is saturated liquid at 20...
-
What is the mirror-image rule?
-
The Bottled Water Company has been bottling and selling water since 1940. Ginnie Adams, the current owner of The Bottled Water Company, would like to know how a new product would affect the company's...
-
Assume your health insurance has a $500 deductible and a 10% co-pay. How much would you have to pay for a $800 medical bill, assuming this is the only charge you have for the entire year?Disability...
-
Quinn Inc. is preparing its annual budgets for the year ending December 31, 2012. Accounting assistants provide the following data: An accounting assistant has prepared the detailed manufacturing...
-
A researcher records the following data for each of three groups. Group A 9 4 2 5 5 Group B 7 12 11 9 5 Group C 12 10 9 8 12 What is the value of the F-statistic? (Round your answer to two decimal...
-
List the environments in which shale might accumulate. What do all of these environments have in common? Some limestones are fine grained and black. How could you tell the difference between a...
-
Explain what Smith's book Desiring the Kingdom contributes to our understanding of communication today?
-
17. Suppose that during the TCP connection closing procedure, a machine that is in the TIME WAIT state crashes, reboots within MSL seconds, and immediately attempts to reestablish the connection...
-
Define the four key categories of preparation that leadership teams should consider for a successful strategic analysis. How do the 12 steps support a successful strategic planning process?
-
1. List the environments in which shale forms. What is the one thing that each has in common with the others? 2. What evidence would indicate that sandstones form on the Earth's surface and not...
-
2. Using the above pollen diagram and plant species information, indicate (1) the range of dates when each of the periods occurred, (2) your evidence (list the most prominent species or notable...
-
Refer to the situation described inBE 18-13, but assume a 2-for-1 stock split instead of the 5% stock dividend. Prepare the journal entry to record the stock split if it is to be effected in the form...
-
If you invest $12,000 today, how much will you have a. in 6 years at 7 percent? b. in 15 years at 12 percent? c. in 25 years at 10 percent? d. in 25 years at 10 percent (compounded semiannually)?
-
Why must one be careful when using sensitivity analysis?
-
Phil Goode will receive $175,000 in 50 years. His friends are very jealous of him. If the funds are discounted back at a rate of 14 percent, what is the present value of his future pot of gold?
-
Some credit card issuers are beginning to assess fees and other charges on convenience users. Ask your friends and peers if they think a convenience credit card user should be charged for the...
-
Break into two or three groups to research the use of affinity cards. First, develop a list of affinity cards and their sponsors. Does your university sponsor a card? Next, each group should choose a...
-
Interview individuals who represent the three stages of the financial life cycle about their credit card usage. How many cards do they have? What kind or class of cards (rebate, premium, affinity,...
Study smarter with the SolutionInn App