II. TERMINAL OUTPUT.If you have short-term money needs, a personal loan can be an alternative. With no collateralneeded, you can apply for a personal loan at any bank in the Philippines.What is a personal loan? A personal loan is a loan for any personal expense. Unlike a housingloan or a car loan, you can use a personal cash loan for anything you want. May it be for tuitionfees, travel expenses, or anything else.When you apply for a personal loan, you enter into an agreement with the lender (usually thebank) and promise to repay the loan over an agreed length of time.To repay your personal loan, you make monthly payments for the loan tenure until you havefully repaid both the principal and interest of the loan.Most banks in the Philippines offer attractive interest rates for their personal loans. Whilestandard monthly interest rates are around 1.5% to 2%.TaskIf you are planning to apply for a personal loan and borrow PhP 30,000 and repay the principaland interest for an agreed length of time of 3 years,a. How much monthly payment is needed for each bank offer?b. How much interest would you pay for 3 years for each bank offer?c. Which is the best option for you among the given choices below if you are to pay monthlyfor 3 years?Justify your answer and apply what you have learned on simple and compound interest.Bank (Personal Loan) Monthly Interest RateABсDE1.3%1.89%https://www.imoney.ph/personal-loan1.22%1.5%1.25%

The monthly payment refers to the amount of money paid every month to pay off or repay the loan…

If you are planning to apply for a personal loan and borrow PhP 30,000 and repay the principal and interest for an agreed length of time of 3 years, a. How much monthly payment is needed for each bank offer? b. How much interest would you pay for 3 years for each bank offer? c. Which is the best option for you among the given choices below if you are to pay monthly for 3 years? Justify your answer and apply what you have learned on simple and compound interest. Bank (Personal Loan) Monthly Interest Rate A 1.3% 1.89% 1.22% B C D E 1.5% 1.25%

If you are planning to apply for a personal loan and borrow PhP 30,000 and repay the principal and interest for an agreed length of time of 3 years, a. How much monthly payment is needed for each bank offer? b. How much interest would you pay for 3 years for each bank offer? c. Which is the best option for you among the given choices below if you are to pay monthly for 3 years? Justify your answer and apply what you have learned on simple and compound interest. Bank (Personal Loan) Monthly Interest Rate A 1.3% 1.89% 1.22% B C D E 1.5% 1.25%

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter7: Credit Cards And Consumer Loans

Section: Chapter Questions

Problem 2LTAI

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