Solve the following problems. 1. How much is the monthly amortization on an automobile loan of P900,000 to be amortized over a 5- year period at a rate 9.5% compounded monthly? 2. Shirl started to deposit P18,000 semi-annually in a fund that pays 5% compounded semi-annually. How much will be in the fund after 10 years? 3. Lyka wants to buy a lot which costs 1 million pesos. She plans to give a down payment of 20% of the cost, and the rest will be paid by financing at annual interest rate of 12% for 10 years in equal monthly installments? What will be the monthly payment? 4. Ken is paying P2,500 every 3 months for the amount he borrowed at an interest rate of 8% compounded quarterly. How much did he borrow if he agreed that the loan will be paid in 2 years and 6 months? 5. A store advertises a motorcycle for P3,000 down payment and P3,000 per month for 15 months. If the interest is 15% compounded monthly, what is the actual value of the motorcycle?
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To find the monthly amortization on the automobile loan, we can use the formula for the monthly payment of an ordinary annuity: P = (PV * r * (1 + r)^n) / ((1 + r)^n - 1) Where P is the monthly payment, PV is the present value (loan amount), r is the monthly Show more…
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