Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN: 9780470458365
Author: Erwin Kreyszig
Publisher: Wiley, John & Sons, Incorporated
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II.
Amortization and Mortgage
Find the amortization amount per month then construct an amortization schedule.
1. Mr. and Ms Geronimo borrow P100,000 from a lending institution to pay the tuition fees of their
children. It will be settled in 6 months by paying monthly amortization at a rate of 2% simple
interest per month.
a. Determine their monthly amortization amount
b. Construct the amortization schedule.
c. How much is the concluding payment?
d. Find the total interest to be paid.
Payment
Number
1
2
3
4
5
6
Total
Amortization
Amount
Payment of
Interest
Payment on
Principal
Balance
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Transcribed Image Text:II. Amortization and Mortgage Find the amortization amount per month then construct an amortization schedule. 1. Mr. and Ms Geronimo borrow P100,000 from a lending institution to pay the tuition fees of their children. It will be settled in 6 months by paying monthly amortization at a rate of 2% simple interest per month. a. Determine their monthly amortization amount b. Construct the amortization schedule. c. How much is the concluding payment? d. Find the total interest to be paid. Payment Number 1 2 3 4 5 6 Total Amortization Amount Payment of Interest Payment on Principal Balance
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