Yahoo Answers is shutting down on 4 May 2021 (Eastern Time) and, as of 20 April 2021 (Eastern Time), the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

(a) What sum of money will be required to discharge a loan of Php 7,800 on April 1, 2012, ?

(a) What sum of money will be required to discharge a loan of Php 7,800 on April 1, 2012, if

the loan is made on Oct. 1, 2003 at a rate of 9% compounded quarterly? (b) if the loan will be

paid semi-annual within the same period, how much will be its equivalent payment?

1 Answer

Relevance
  • 2 months ago

    that is 1 Q in 03, 4 Q in 04 thru 11, 1 Q in 12 for a total of 34 quarters.

    A = P(1+(r/4))^(4n)

    A = 7800(1+(0.09/4))^(34) = 16620.63

    Mortgage payment

    A = P•r(1 + r)ⁿ / ((1 + r)ⁿ – 1)

    A = 7800(0.09/2)(1 + 0.09/2)^(34/2) / ((1 + 0.09/2)^(34/2) – 1)

    A = 7800(0.045)(1.045)^(17) / ((1 .045)^(17) – 1)

    A = 7800(0.045)(2.1134) / (2.1134 – 1)

    A = 7800(0.045)(2.1134) / (1.1134)

    A = 666.24

    total paid = 17•666.24 = 11326.08

    Mortgage payment

    A = P•r(1 + r)ⁿ / ((1 + r)ⁿ – 1)

     A  is the periodic amortization payment

     P  is the principal amount borrowed

     r  is the percentage rate per period; for a monthly payment,

         take the Annual Percentage Rate (APR)/12

     n  is the number of payments; for monthly payments over 30 years,

         12 months x 30 years = 360 payments.

    Interest compounded quarterly

    A = P(1+(r/4))^(4n)

    r is annual rate as a decimal

    P is principle

    n is number of years

    A is present value

Still have questions? Get answers by asking now.