Solve the problem.

1. A brand new car has a list price of P795, 000.00. The car dealer is giving a trade discount of 10%

and requires 20% down payment. The car dealer has an arrangement with a bank to finance the

balance on the car. The term of the loan is 4 years. The bank is charging an interest of 5% per

annum.

a. Compute the net invoice price of the car.

b. Compute the down payment needed and the balance that will have to be financed by the bank.

c. How much will the monthly payment be? What portion of the monthly payment for the first month

will go to interest and to principal? What about for the second monthly payment?

d. Prepare the amortization schedule for the first half of the first year.

2. A sala set and dining set is priced at P60,999. The seller offers in installment basis for 2 years at

9% and requires 16% down payment.

a. Compute the down payment and the remaining balance.

b. Compute the monthly payment.

c. What is the total payment for the buyer to pay?