You made a housing loan amounting to 1.25 million pesos at an interest rate of 10% compounded semiannually with equal payments to be made at the beginning of each semiannual. The loan is payable in 20 equal payments given that the annuity for the first six payments is 1.5 times higher than the annuity for the rest of the paying period. a) How much do you have to pay semiannually for the first six payment periods? b) How much do you have to pay semiannually for the rest of the paying period following the first six payments? c) Given that you have paid your semiannual dues regularly, how much do you have to pay at the start of the 7th semiannual to settle your loan?

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Loan Payment Calculations for Your House We can solve this problem by using the concept of Annuity Due payments made at the beginning of each period a... View the full answer