1. A loan of Php 2,500 is made for a period of 13 months at an interest rate of 5%, compounded bimonthly. What future amountis due at the end of the loan period?2. A man deposits Php 6,000 in a strange bank that promises 1.5% simple growth interest for 'w' years. After that, 2% interestwill begin for 'x' years, which is to be compounded semiannually. If the man wishes the future amount to be up by 147% itsprincipal amount. How many years should the money sit in this strange bank given that the time of "x" is twice as much as"w"?3. If you let your friend borrow Php 50,000 for an interest rate of 5% compounded continuously, when does your greedy selfbecome a millionaire?

(1.) The formula for calculating the future amount due on a loan with compound interest is: FV= P ×…

Answered: 1. A loan of Php 2,500 is made for a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A loan of php 2500 is made for a period of 13 months, from january 1 to january 31 the following year at an interest rate of 5%, compounded quarterly. What future amounts is due at the end of the loan period?
Calculate the total amount of interest dollars you will pay the bank over the life of the loan. Round to the nearest dollar and assume end-of-month payments. Table 6.2 The Loan Amortization Schedule for a $5,000 Loan at 10% to Be Repaid in Four Years Year Amount Owed on the Principal at the Beginning of the Year (1) Interest Portion Annuity Payment (2) of the Annuity = (1) x 10% = (3) 1 $5,000.00 1577.35 500 2 (1) Amount Owed (ii) PMT (III) Interest on the Principal at the Beginning Portion of the 2nd year of the Year 2 3 4 Repayment of the Principal Portion of the Annuity = (2) (3) (4) 1077.35 (iv) Repayment of the Principal Portion of the 2nd year Outstanding Loan Balance at Year End, After the Annuity Payment = (1)-(4) = (5) 3922.65 (v) Outstanding Loan Balance at Year 2 End, after the Annuity Payment Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 2000 b 6309 с 1309 d 500
A loan of R40 000 is granted at an interest rate of 18% pa compounded monthly. In order to amortize the loan, regular equal payments of R400 will be made every three months starting three months after the loan was granted. The balance outstanding (rounded to the nearest cent) on the loan immediately after the twenty-first payment is made is equal to:
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1. A loan of Php 2,500 is made for a period of 13 months at an interest rate of 5%, compounded bimonthly. What future amount is due at the end of the loan period?