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to make a down paymer Jay is going to pay the рay I a. How How

to make a down paymer Jay is going to pay the рay I a. How How

FINANCIAL ACCOUNTING
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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Directions: Read the problem carefully and solve what is being asked using partial payments on loan. Problem: Jay wants to have a new car but he doesn't have enough money so he decided to make a car loan to finance his buying a new car. The Piwong Bank requires 20% of the amount of the car as the down payment. If Jay is going to buy a brand-new car worth P700,000.00, then he has to make a down payment of P140,000.00 and apply for a loan for the excess of P560,000.00. If Jay is going to pay the loan for 3 years with the simple interest rate of 4.79%, a. How much is the maturity value of the car? b. How much is the monthly installment? What is the total interest of the car loan? с.
Transcribed Image Text:Directions: Read the problem carefully and solve what is being asked using partial payments on loan. Problem: Jay wants to have a new car but he doesn't have enough money so he decided to make a car loan to finance his buying a new car. The Piwong Bank requires 20% of the amount of the car as the down payment. If Jay is going to buy a brand-new car worth P700,000.00, then he has to make a down payment of P140,000.00 and apply for a loan for the excess of P560,000.00. If Jay is going to pay the loan for 3 years with the simple interest rate of 4.79%, a. How much is the maturity value of the car? b. How much is the monthly installment? What is the total interest of the car loan? с.
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