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    Amortization & Sinking Fund

    Uploaded by

    AaronUy
    The document shows an amortization schedule for a loan of ₱750,000 with an interest rate of 8% compounded semiannually over 12 years. It shows that the borrower will make equal semiannual payments of ₱79,914.13, with part of each payment going toward interest and part reducing the outstanding principal balance. By the end of the loan, the borrower will have paid a total of ₱958,969.56, including ₱208,970 in total interest. The second document shows a sinking fund schedule for deposits of ₱35,000 every 3 months for 3 years at an interest rate of 6% compounded quarterly.

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    Download as DOC, PDF, TXT or read online from Scribd

    Amortization & Sinking Fund

    Uploaded by

    AaronUy
    247 views2 pages
    The document shows an amortization schedule for a loan of ₱750,000 with an interest rate of 8% compounded semiannually over 12 years. It shows that the borrower will make equal semiannual payments of ₱79,914.13, with part of each payment going toward interest and part reducing the outstanding principal balance. By the end of the loan, the borrower will have paid a total of ₱958,969.56, including ₱208,970 in total interest. The second document shows a sinking fund schedule for deposits of ₱35,000 every 3 months for 3 years at an interest rate of 6% compounded quarterly.

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    amortization & sinking fund

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    The document shows an amortization schedule for a loan of ₱750,000 with an interest rate of 8% compounded semiannually over 12 years. It shows that the borrower will make equal semiannual payments of ₱79,914.13, with part of each payment going toward interest and part reducing the outstanding principal balance. By the end of the loan, the borrower will have paid a total of ₱958,969.56, including ₱208,970 in total interest. The second document shows a sinking fund schedule for deposits of ₱35,000 every 3 months for 3 years at an interest rate of 6% compounded quarterly.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    247 views2 pages

    Amortization & Sinking Fund

    Uploaded by

    AaronUy
    The document shows an amortization schedule for a loan of ₱750,000 with an interest rate of 8% compounded semiannually over 12 years. It shows that the borrower will make equal semiannual payments of ₱79,914.13, with part of each payment going toward interest and part reducing the outstanding principal balance. By the end of the loan, the borrower will have paid a total of ₱958,969.56, including ₱208,970 in total interest. The second document shows a sinking fund schedule for deposits of ₱35,000 every 3 months for 3 years at an interest rate of 6% compounded quarterly.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    Periodic Repayment of the

    Period Outstanding Balance Interest Payment Principal

    1 750,000 30,000 79,914.13 49,914.13

    2 700,085.87 28003.43 79,914.13 51910.70

    3 648,175.17 25927.01 79,914.13 53987.12

    4 594,188.05 23767.52 79,914.13 56146.61

    5 538,041.44 21521.66 79,914.13 58392.47

    6 479,648.97 19185.96 79,914.13 60728.17

    7 418,920.80 16756.83 79,914.13 63157.30

    8 355,763.50 14230.54 79,914.13 65683.59

    9 290,079.91 11603.20 79,914.13 68310.93

    10 221,768.98 8870.76 79,914.13 71043.37

    11 150,725.61 6029.02 79,914.13 73885.11

    12 76,840.50 3073.62 79,914.13 76840.51

    TOTAL 208,970 958,969.56 750,000.01


    VILLANUEVA, JOSEPHINE M.
    M117D

    Christian bought a car worth P1, 500,000, with a down payment of P750, 000 and the
    balance is payable at the end of every 6 months for 6 years. If the interest is at 8%
    compounded semiannually, how much is the semiannual installment?

    R= Ai v =R = P 79,914.13
    1 – (1-i)-n

    = 750,000 (.04)
    1- (1- .04)-12

    Amortization Schedule
    Celine deposits P35, 000 every three months in 3 years at 6% compounded quarterly.
    Construct a sinking fund schedule.

    S=R (1+i)n – 1 S = P 456, 442.40


    i

    = 35,000 (1+.015)12 – 1
    .015

    Sinking Fund Schedule

    No. of Payments Deposit Interest Increase in Fund Amount in Fund

    1 35,000 0 35,000 35,000

    2 35,000 525 35,525 70,525

    3 35,000 1057.88 36,058 106,583

    4 35,000 1598.74 36,599 143,182

    5 35,000 2147.72 37,148 180,329

    6 35,000 2704.94 37,705 218,034

    7 35,000 3270.51 38,271 256,305

    8 35,000 3844.57 38,845 295,149

    9 35,000 4427.24 39,427 334,577

    10 35,000 5018.65 40,019 374,595

    11 35,000 5618.93 40,619 415,214

    12 35,000 6228.21 41,228 456,442

    TOTAL 420,000 36442.40 456,442

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