1. A business loan of 1,200,000 pesos is to be paid in full after 5 years. If the interest rate is 4% per annum. How much should be paid after 5 years? 2. Mr. Layug had a 43,000-peso business loan that is to be paid in 8 months. If interest rate is 8% compounded monthly, how much should be paid after 8 months? 3. For the purchase of a car worth 1,060,000 pesos, the bank requires a minimum amount of 15% down payment. Find the mortgaged amount. 4. Suppose that a condominium unit is purchased for 2,400,000 pesos and the bank requires 25% down payment, how much is the mortgaged amount? 5. Mr. Villanueva obtained a 3,800,000-peso mortgage. If the monthly payment is 45,000 pesos for 10 years, how much is the total interest paid? 6. A consumer loan worth 83,000 pesos is to be repaid in 18 months at 8% convertible monthly. How much is the monthly payment? 7. Mr. De Vera got a 96,000-peso loan to be repaid semi-annually in 3 % years. If interest rate is 15% compounded semi-annually, how much is the semi-annual payment? 8. A loan of 67,000 pesos is to be amortized by paying quarterly in 1 year. If the money is worth 12% compounded quarterly, how much is the monthly installment? 9. Mr. and Mrs. Ignacio had a lousing loan payable monthly for 15 years. After paying for 4 years, how many payments are left? 10. Before borrowing a money. What are the important things to consider? Elaborate your answer.

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. …