Engineering Board Exam Reviewer · Loan Amortization · medium
A loan of P1,000,000 at 10% compounded annually is repaid by 10 equal year-end payments. Find the total interest paid over the life of the loan.
- P1,000,000
- P162,745.39
- P627,453.95
- P100,000
Answer
C. P627,453.95
Solution
A=1,000,000(A/P,10%,10)=P162,745.39. Total paid =10A=P1,627,453.95. Interest =1,627,453.95-1,000,000=P627,453.95.
More Loan Amortization questions
- A loan of P400,000 at 12% compounded monthly is paid by P10,000 monthly payments for 36 months, with a balloon payment due together with…
- A loan of P100,000 at 18% compounded monthly is repaid by monthly payments of P5,000. About how many months are needed to pay it off?
- A housing loan of P2,000,000 at 9% compounded monthly is paid in equal monthly payments over 15 years. Find the monthly payment.
- For the same loan (P500,000, 12% compounded monthly, 60 months), how much of the 25th payment goes to interest?
- For the loan of P500,000 at 12% compounded monthly over 60 months, find the outstanding balance right after the 24th payment.
- A loan of P500,000 at 12% compounded monthly is repaid by equal monthly payments over 5 years. Find the monthly payment.
- A loan of P300,000 at 12% compounded monthly is repaid by P4,000 monthly payments. About how many months are needed?