THE AMORTIZATION SCHEDULE Amount repaid Interest at 10% due at Periodic payment Outstanding principal at to the at the principal PERIOD the end the end of end of at the of every 6 end of every 6 months (A) every 6 months months every 6 months (E) (B) (C) (D) 1 2 3 4 5 TOTAL 1. Complete the amortization table
THE AMORTIZATION SCHEDULE Amount repaid Interest at 10% due at Periodic payment Outstanding principal at to the at the principal PERIOD the end the end of end of at the of every 6 end of every 6 months (A) every 6 months months every 6 months (E) (B) (C) (D) 1 2 3 4 5 TOTAL 1. Complete the amortization table
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
REGULAR PAYMENT OF SIMPLE ORDINARY ANNUITY
Eva obtained a loan fee of Php50,000 for the tuition of her son. She has to repay the loan by equal payment at the end of every six months for 3 years at 10% interest compounded semi-annually. Find the periodic payment.
Transcribed Image Text:THE AMORTIZATION SCHEDULE
Amount
Interest
at 10%
Periodic
repaid
to the
Outstanding
principal at
the end of
payment
due at
at the
end of
principal
PERIOD
the end
at the
of
every 6
every 6
months
end of
(A)
|every 6
months
months
every 6
months
(E)
(B)
(C)
(D)
1
4
6
ТОTAL
1. Complete the amortization table
Transcribed Image Text:1. Complete the amortization table
2.The amortization schedule can be prepared
as follows
PROCEDURE
A. Calculate the periodic payment.
Complete Column B with this periodic
payment
B. To fill up Column C, Calculate interest
using the formula: T= PRT
C. To fill up Column D, subtract Column C
from Column B
D. To fill up Column E, from Column E
subtract Column D.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education